The XAU/USD pair is correcting within an uptrend at 1727.0.
Although the quotes of the trading instrument are near the annual lows, the demand for both physical gold and contracts remains high. Thus, the Australian Mint reported that in August, it sold 84.9K ounces of metal in the form of bars and coins, which is 57.4% higher than the same indicator last year and 7.2% higher than in July. The US Mint sold 857.0K ounces of gold as coins in the first eight months of this year, up 1.2% from last year, while Canada sold CAD 31.9M worth of coins in the second quarter compared to 24.8M Canadian dollars a year earlier.
The latest report from the US Commodity Futures Trading Commission (CFTC) last week recorded active closing of transactions by sellers, and the trend is observed in all categories: in positions backed by money, the “bulls” increased their superiority, reaching 1.294K contracts, while the “bears” there is a decrease by 4.035K. In the positions of swap dealers, buyers added 2.064K contracts, and sellers liquidated 10.359K contracts.
On the daily chart of the asset, the price moves in a downward channel, and after reaching the low of the year, it again approaches the resistance line. Technical indicators maintain a weakening sell signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming upward bars in the sell zone.
Resistance levels: 1734.0, 1780.0. | Support levels: 1696.0, 1650.0.