Gold Update

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There is a strong bearish divergence on the weekly RSI and MACD of gold prices. There is no bearish cross on the current weekly MACD of gold though. From a charting perspective this looks bearish for gold prices.

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From a different angle.....put/call open interest ratios on GLD are rising with prices. This may mean that large investors are long and are hedging their investment, or also possibly that bearish speculators are not yet exhausted, which from a contrarian point of view should allow more upside.

Of the other sentiment related data I follow, it looks pretty mixed. There is not much notable as far as extremes in COT data or surveys, etc. There definitely was this past winter, so maybe this is a divergence at a major high, but I definitely don't have any strong opinion on that.