Regardless of mounting short-term stress in Gold futures, algorithmic merchants could solely briefly trim positions earlier than re-accumulating, with broader participation metrics suggesting a possible native backside in costs, analysts say, TDS’ Senior Commodity Strategist Daniel Ghali notes.
Structural help intact amid low participation
“Worry not, however algos might promote some Gold size for the primary time since Liberation Day’s fallout beneath $3375/oz in GCQ5. Quick-term development alerts are underneath stress following the latest rangebound buying and selling regime, probably leading to promoting exercise tallying as much as -4% of algos’ max dimension this session (or 7% of their present dimension).”
“In any situation for costs, CTAs will re-accumulate this misplaced size over the approaching week — and will probably find yourself with a fair bigger place dimension on a continued uptape, pushed primarily by vol-control and signal-strength.”
“Western macro funds stay extraordinarily under-invested. Mixture participation in CME Gold has reached excessive ranges which have traditionally marked native lows in costs. Overbought however underowned.”
