Nasdaq, Gold, US Dollar Analysis and Charts
- Nasdaq 100 eyes 20,000 as buyers remain in control.
- Gold slips as risk sentiment turns positive.
- US dollar little changed, markets eye SNB and BoE this week.
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The technology sector in the United States continues its upward momentum, propelled by the persistent demand for the Mag 7 stocks. The Nasdaq 100 index is nearing the significant 20,000 level. The top three corporations in the Nasdaq – Nvidia, Microsoft, and Apple – collectively account for nearly 26% of the index’s total market capitalization. This figure underscores the substantial concentration risk posed by these Mag 7 stocks within the index.
Nasdaq Daily Price Chart
The United States dollar is maintaining a steady course in early trading, with a scarcity of high-impact data or events this week to provide directional guidance. US Treasury yields persist at or slightly above their recent multi-week lows, while expectations for US interest rate cuts remain largely unchanged. The market currently anticipates the first reduction in November, although a move at the September meeting would not come as a surprise. Furthermore, an additional rate cut is expected by the end of the year.
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The US dollar index is trading around 105.60 and is consolidating its recent move higher. The greenback is back above all three simple moving averages, a bullish signal, but looks overbought using the CCI indicator.
USD Daily Price Chart
Gold is consolidating its recent gains and remains within a multi-week range. The 20- and 50-day simple moving averages are currently acting as short-term resistance, and these need to be broken and opened above to keep the precious metal moving higher. Support just below $2,280/oz. should hold in the short term.
Gold Respecting a Recent Trading Range but Support Needs to Hold Firm
Gold Daily Price Chart
Retail trader data shows 56.86% of traders are net-long with the ratio of traders long to short at 1.32 to 1.The number of traders net-long is 1.99% higher than yesterday and 22.10% lower than last week, while the number of traders net-short is 0.30% higher than yesterday and 33.70% higher than last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Gold trading bias.
of clients are net long. of clients are net short.
| Change in | Longs | Shorts | OI |
| Daily | -6% | 12% | 1% |
| Weekly | -12% | 14% | -3% |
Charts via TradingView
For all economic data releases and events see the DailyFX Economic Calendar
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