fxs_header_sponsor_anchor

News

Gold trades like the new Bitcoin – TDS

The cards were set well before election night, with evidence overwhelmingly suggesting the melt-up in Gold was underscored by a liquidity vacuum, with the US election being the focal point, TDS’ Senior Commodity Strategist Daniel Ghali notes.

Significantly deeper-than-normal Gold consolidation

“The event risk has unleashed pent-up selling activity, and while price action may screen oversold, liquidations thus far have not been extreme. CTAs have shed only 10% of their max size and could be set to sell an additional -15% of their max size over the coming sessions in a continued downtape.”

“Given simultaneously extreme positioning cues from macro funds (Earth to macro funds!) and Shanghai traders — who are also now selling at their fastest clip in years, clocking in at more than 35t of notional Gold sold into a seasonal demand upswing over the last month — and still lackluster buying activity in physical markets, we expect continued pressure on Gold prices and a significantly deeper-than-normal consolidation.”

“While price action in Silver has remained relatively contained, given its cleaner positioning set-up, the outlook for CTA flows has now notably deteriorated, with our simulations now suggesting incoming selling activity in nearly every scenario for market prices over the coming week, barring a big uptape. Silver might catch-down to Gold before precious metals find a floor.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.