Gold (XAU/USD) prices remain near all-time highs, but the associated narratives are outdated, notes Daniel Ghali, senior commodity strategist at TDS.
The risk of a positioning liquidation is the highest of the year
“Macro funds’ positioning is statistically consistent with the aggressive 200 bps of Fed cuts priced into rate markets over the next twelve months. CTAs are at their ‘maximum long’ position size, while the threshold for a deterioration in bullish trend signals is getting closer by the day.”
“Asian flows have deteriorated markedly, following a brief pause in buyer stoppage linked to a brief wave of buying activity associated with the change in Indian tariffs. Shanghai traders’ positioning remains near record levels, but is increasingly under pressure.”
“Several of the major cohorts in the Gold markets are now facing buying exhaustion, while the narrative that drove prices to these all-time highs now looks outdated. The risk of a positioning sell-off is at its highest levels of the year.”
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.
