Bulls have very little reason to worry for a specific reason and here it is why
Gold price has given up some of its gains after better than expected Chinese economic numbers. The People Bank of China has been providing its full support for the economy and this backing has saved the day for China. However, the economic data did show that the Chinese economic growth has slowed to the weakest pace since 1992. The Chinese GDP q/q number of 6.2% clearly shows that the on going trade war has left a massive dent in the economic growth of the country. Having said this, the factory output and retail sales numbers have beaten estimates and this has brought some risk on appetite among investors.
Despite this, the gold price is still trading near the highest level in nearly six years and I do not think that the trend isn’t going to change anytime soon because the Fed has once again adopted the loose monetary policy. The Fed is under pressure to cut the interest rate this year in order to support inflation and this means weaker dollar.
As for the big bets, money managers have scaled back their positions in gold. According to the recent CFTC data, bullish bets dropped to 24,021 from a previous level of 217,142. This is despite the fact that geopolitical tensions are still high. France, Germany and the UK have increased pressure on Iran to act responsively in relation to its commitment (made back in 2015 about the international nuclear agreement).
From a technical perspective, the price is still looking solid. On a daily time frame, the price is trading above the 50-day, 100-day and 200-day moving averages. This confirms that the price is trading in an uptrend and as long as the price stays above this, bulls have very little reason to worry about anything.
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