Gold (XAU/USD) traded strongly on Thursday, commodity trading advisors (CTAs) are unwinding some of their length. As for Silver (XAG/USD), major funds on the Shanghai Futures Exchange (SHFE) quickly reduced their net position by 9k lots, commodity traders at TDS note.
Asian demand is expected to remain strong
“Despite yesterday’s strong move in Gold, CTAs are unwinding some of their length, needing to see prices comfortably above $2,437/oz to add further length. While some fund managers may be taking profits near all-time highs, lower-than-expected inflation data and softer employment data reinforced expectations for a start to the Fed tapering cycle in September.”
“The first evidence of renewed interest is starting to show as ETF positions continue to rise in July, after June saw the first monthly increase since May 2023. While Chinese gold stocks remained flat for a second consecutive month amid their buying pause, top traders on the SHFE have added to their net positions again, highlighting that Asian demand is expected to remain strong.”
“As for Silver, after the notable increase in positioning, top SHFE funds quickly reduced their net position by 9k lots overnight, while CTAs could also turn into sellers below $30.78/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.
