The timing of gold’s foray into new all-time highs surprised several market observers, but the latest CFTC positioning data helps explain the price action, notes Daniel Ghali, Senior Commodities Strategist at TDS.
The last stage of the rally could be associated with a short-squeeze
“Some proprietary traders, family offices and macro funds joined the dark side over the past week, initiating some shorts ahead of the long-awaited start of the Fed tapering cycle.”
“Meanwhile, our gauge of net positioning of macro funds declined last week, which, together with peak readings of CTA positioning and concurrent liquidations by Shanghai traders, reveals that the last leg of the rally may well have been associated with a short-squeeze.”
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.
