Gold prices are under pressure but remain resolutely range-bound near all-time highs. However, for the first time in months, price action could now unlock CTA selling activity over the coming week, notes Daniel Ghali, Senior Commodity Strategist at TDS.
Gold range-bound near all-time highs
“This scenario has formed just in time for the release of the NFP data, which could inject volatility into the markets amid TD Securities’ expectations of a 205k increase in jobs.”
“While we would only expect CTAs to sell 10% of their maximum size in a scenario where prices break $2,450/oz in the coming sessions, this could be the first group to flash amid a backdrop where positioning signals are red on multiple fronts.”
“Macro funds’ positioning is particularly extreme, with our gauge now approaching its highest levels on record. While this consensus view may be challenged, a context in which rate cuts engineer a soft landing is not necessarily a positive environment for gold, as capital could plausibly flow out of the yellow metal into more productive uses.”
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.
