Gold seems to have entered a consolidation phase after a period of strong sales. With the CTA now biased towards the purchase, the ETF exits reversing and the macro funds still short, the market configuration favors a new upward trend in the short term, says Daniel Ghali, senior strata of TDS raw materials.
Sales exhaustion signs indicate an upward risk in gold
“What happens after the exhaustion of sales in gold? For the first time in months, the CTAs are now extremely biased towards the purchase. The trade activity within the range is similar to the decrease in time for trend monitoring systems, lowering the threshold so that sales programs impact the market, which ultimately weighed on prices during the last week.”
“The remaining lengths of the CTAs have a wide safety margin before the next sale program is activated below the $ 3.130/Oz. Looking forward, on almost all the prices scenarios, the CTA will once again acquire their recently discarded gold length of gold during the next week.”
“The Golden ETF outings of China have stopped completely, with healthy entries resuming now. Macro funds are still short in gold, probably due to a tactical vision of the USD.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
