Gold seems to have entered a consolidation part following a interval of heavy promoting. With CTAs now skewed towards shopping for, ETF outflows reversing, and macro funds nonetheless quick, the market setup favors a renewed uptrend within the close to time period, TDS’ Senior Commodity Strategist Daniel Ghali notes.
Promoting exhaustion indicators upside danger in Gold
“What occurs after promoting exhaustion in Gold? For the primary time in months, CTAs at the moment are extraordinarily skewed in direction of shopping for. Vary-bound buying and selling exercise is akin to time decay for development following methods, reducing the bar for promoting packages to hit the tapes, which finally weighed on costs over the past week.”
“Remaining CTA longs have a big margin of security earlier than the following promoting program kicks in beneath $3130/oz. Trying ahead, in almost each state of affairs for costs, CTAs will reacquire their just lately shed Gold size over the approaching week.”
“Chinese language Gold ETF outflows have absolutely subsided, with wholesome inflows now resuming. Macro funds stay quick in Gold, doubtless owing to a tactical USD view.”
