The Chinese ETFs sold approximately -64koz in the last session, compensating more than the +27koz entries of the X -China Global ETFs. These outputs still remain multiple below the scale of entries viewed in recent months, which suggests an additional sales activity of other groups, says Daniel Ghald, senior strategist of TDS raw materials.
The weakening of the USD as a reserve of value supports gold
“A continuous increase in the open interest of gold in Comex could point out some short -modest short acquisitions in the last sessions, but still, the scale of these sales flows as a whole remains limited, which suggests that prices are simply consolidating with modest retail exits until they find the first offer.”
“After all, we reiterate that the CTA will not significantly sell their long positions without a substantial setback, the macro funds are approximately gold planes and the main merchants of Shanghai have been buying aggressively the fall after maintain Retail ETFS as the only vulnerable group, and less than macro funds choose to build a more significant short net position, the persistent demand of central banks should be strong enough to compensate for such flows. “
“The surprise will be that gold prices struggle to quote down, despite the worst scenario for gold in the trade that is presented this week. This is how an asymmetric trade is seen, and ultimately, we believe that this behavior is symptomatic that the USD is partially losing its value reserve function, even if it is not losing its reserve currency status.”
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.
