XAU/USD rises despite cooling long sentiment; Silver follows gold higher

Gold (XAU/USD) has advanced 0.8% to $2,640 per ounce, while silver (XAG/USD) gained 1.2% to $30.25, even as positioning data shows long sentiment cooling among retail traders. The precious metals rally comes amid broader USD weakness, with the Dollar Index declining 0.3% to 107.85. Despite the price appreciation, commitment of traders reports indicate a reduction in net long positions, suggesting profit-taking among speculative investors. Gold's advance above the $2,630 resistance level opens the path toward $2,650, while silver faces resistance at $30.50. The divergence between price action and sentiment indicators reflects year-end position adjustments rather than a fundamental shift in bullish outlook. Technical indicators remain constructive for both metals, with gold maintaining support above its 20-day moving average at $2,615. Traders are monitoring USD movements and real yield dynamics as key drivers for precious metals heading into 2025.