Gold Technical Analysis – The most crowded trade
Fundamental
Overview
As the stock markets around
the world bottomed, the pressure on gold eventually waned and the precious
metal rallied strongly into new all-time highs.
The rally has been
aggressive as everyone rushed into gold as protection from potential
stagflation due to trade wars. The problem is that “long gold” is now the most
crowded trade according to the Bank of America Fund Manager Survey.
In the bigger picture, gold
remains in an uptrend as real yields will likely continue to fall as the bar
for rate hikes remains very high. The risks include another aggressive stock
market selloff or a hawkish Fed.
In the short term, given the
crowded long positions in gold, an easing in the trade war will likely trigger
a deeper…
