Gold is trading near all-time highs ahead of the NFP release just weeks away from the highly anticipated start of a rate-cutting cycle, notes Daniel Ghali, Senior Commodity Strategist at TDS.
Gold is trading near historic highs
“Today’s ADP failure does not bode well for a directional outcome in the NFP, but that is not a necessary condition for gold prices to fade. Certainly, the outcome TD Securities expects in the NFP could help catalyze a shift in positions, but our reading of the positioning dynamics is already at extreme levels that have historically marked significant turning points in gold markets.”
“Macro fund positioning is now at levels only seen during the Brexit referendum in 2016, the ‘covert QE’ narrative in 2019, or at the panicked peak of the Covid-19 crisis in March 2020. This time around, physical markets have already faded, while we also see extremes in the positions of Shanghai traders alongside CTA trend followers. Downside risks are more potent.”
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.
