Gold Weekly Forecast: Short covering lifts prices as traders await the Trump-Xi summit
The week in retrospective The precious metal started the week in quite a bearish mood, further extending the almost uninterrupted leg lower after August tops near the $4,700 mark per troy ounce. However, market sentiment made a U-turn in the second half of the week. It was not the Federal Reserve (Fed), reignited geopolitical tensions, the US Dollar (USD) or Treasury yields. This time the catalyst for the ongoing recovery in Gold prices has been the marked retracement in prices of crude Oil, both the American (WTI) and European (Brent) benchmarks. So, broadly speaking, declining crude Oil prices work against expectations of higher consumer prices, which in turn prompts the Fed to maintain its (now reinforced) cautious stance. And a direct consequence of the latter was an extra impulse from short covering, as the vast majority of traders were positioned for lower prices in tandem with the widely anticipated rate hike by the Fed on Wednesday. Discover more Merchant Services & Payment Systems Brokerages & Day Trading Engineering & Technology Gold longs hold firm, but crowding risk rises Gold bullish positioning strengthened modestly in the week ending September 8, according to the Commodity Futures Trading Commission (CFTC). That said, net speculative positioning rose to almost 232K contracts, reversing part of the









