Gold shows signs of exhaustion in sales, with the sales pressure of the CTA largely behind and the short discretionary ones approaching saturation. With key triggers down well below the current levels, the positioning points to a possible rebound in the next few days, says Daniel Ghald, senior strategist of TDS raw materials.
The CTA are unlikely to sell unless gold breaks below $ 3.040
“Imminent exhaustion in sales in gold. In almost all scenarios for prices, the CTA will once again acquire their recently discarded gold length during the next week. Active gold prices now need to break below 3.040 $/OZ to catalyze the next sales program, highlighting a very large security margin against the next round of sales activity of the CTA.”
“The Chinese ETFs exits have also been completely stopped as we expected after the greatest round of liquidations since May. Although discretionary traders in Comex’s gold have covered a notable part of their short position during the last week, this cohort remains clearly short today, probably due to a tactical vision of the USD. The depletion in sales has returned to the gold markets.”
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.
