Gold (XAU/USD) risk reversals shows that demand for XAU calls has weakened. How does the yellow metal trading today? Learn this from the 21 February Gold Price Technical Forecast.
21 February, GKFX – The XAU/USD one month 25 delta risk reversals are being paid today at XAU 0.225 calls vs. XAU 0.40 calls last Thursday (recent high). The decline indicates the premium claimed by XAU calls over XAU puts has dropped, i.e the demand for bullish bets (calls) has weakened.
That said, the risk reversals are still holding well above the monthly low of -0.475 (or XAU 0.475 puts).
As of writing, the metal is trading just below the ascending 50-day MA of $1328. The rising Treasury yields and the pick up in the greenback seem to have weighed over the metal this week.
21 February Gold Price Technical Forecast
A break above $1330 (session high) would add credence to the upward sloping (bullish biased) 50-day MA and open doors for a sustained rise to $1340 (10-day MA) and $1346 (Feb. 6 high). On the downside, breach of support at $1324 (Jan. 18 low) could yield a pullback to $1316 (38.2% Fib R of Dec-Jan rally). A daily close below the same would allow for a bigger sell-off to $1300 (psychological level).
Disclaimer
This article 21 February Gold Price Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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