Despite the growing short -term pressure in gold futures, algorithmic traders can briefly cut positions before accumulating again, with broader participation metrics that suggest a possible local minimum in prices, analysts say, says Daniel Ghali, senior strategist of TDS commodities.
Structural support intact in the middle of low participation
“They do not fear, but algos could sell some gold length for the first time from the consequences of the day of liberation below $ 3375/OZ in GCQ5. The short -term trend signals are under pressure after the recent negotiation regime in the range, which could result in a sales activity that adds up to -4% of the maximum size of the algos in this session (or 7% of its current size).
“In any scenario for prices, the CTAS will accumulate this length lost during the next week – and could end an even larger position size in a continuation of the upward trend, mainly driven by the control of volatility and the force of the signal.”
“The western macro funds remain extremely sub -verted. The participation added in CME’s gold has reached extreme levels that have historically marked local minimums in prices. Overcompared but subpost.”
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.
