Discretionary traders are returning to the Gold (XAU/USD) markets, notes Daniel Ghali, senior commodity strategist at TD Securities.
CTAs will continue to buy Gold
“Discretionary traders are returning to gold markets. With this group now having accumulated their largest position of this cycle, our proxy suggests that macro traders’ positioning in gold is now somewhat larger than would be expected given the number of Fed rate cuts that have been priced into the markets for next year.”
“It still remains well below the highs marked in previous Federal Reserve (Fed) rate-cutting cycles, pointing to some scope for further gains if expectations for the next rate-cutting cycle continue to deepen. Long positions by discretionary traders have also been increasing in recent weeks, in line with the Trump trade that is also attracting interest towards the Yellow Metal.”
“Gold technicals are also among the strongest on our global macro radar, underlining the high threshold for Commodity Trading Advisor (CTA) trend followers before they are forced to liquidate further long positions. While the recent drop in gold had catalysed some liquidations, CTAs are now likely to return to the bid without a significant reversal below $2,370/oz.”
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.
