Earth to macro funds. There is no magical reason why Fed cuts should lead to higher gold prices, says Daniel Ghali, Senior Commodities Strategist at TDS.
Breach risk is elevated
“Ultimately, gold markets are a function of buyers and sellers, and our advanced positioning analytics suite is screaming caution on several fronts. Macro fund positioning is now at its highest levels on record, slightly outperforming levels printed in the weeks following the Brexit referendum. There are almost no short positions left by directional money managers.”
“Shanghai traders still maintain their record length, but Chinese investors now have several alternatives at their disposal and fears of currency devaluation have subsided. Asian brick-and-mortar traders are on a buyers’ strike. Bank buying activity “The consensus is unanimously bullish.”
“Recent price action has been a function of limited selling activity, potentially pointing to a liquidity gap given the challenge to Western positions by the US rates markets and the broader dollar.” “
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.
