Gold Price Risks 6% Drop Amid Diverging Market Positions

Gold (XAU/USD) is trading below its 20-day, 50-day, and 100-day EMAs, indicating a bearish trend, according to BeInCrypto. The metal has been in a descending channel since January, with commercial hedgers increasing short positions, now comprising 71.2% of open interest. Meanwhile, non-commercial speculators have added long positions, reflecting a divergence in market sentiment. The options market shows a rise in put hedges, aligning with the bearish outlook. Geopolitical tensions involving Iran and oil prices are adding pressure on the dollar, affecting gold's performance. A break below $4,308 could lead to a 6.35% decline.