Gold could see heavier selling from Shanghai – TDS

Joshua Gibson FXStreet

Analysts from Toronto-Dominion Securities (TDS) have noted that short activities in Gold could be on the rise, and originating from China.

Shanghai traders selling into the safe-haven bid in Gold

As Chinese traders return to their seats following Golden Week holidays, our tracking of the largest participants in SHFE gold markets points to evidence that they have begun liquidating their bloated gold length, with 5.5k SHFE lots of net length sold over the last two trading sessions.

These liquidations represent approximately 13.5% of their total net length, and brings their net position a nudge closer to their average year-to-date position. At the same time, while the safe-haven bid may spark marginal buying activity from CTA trend followers this session, our positioning analytics argue for little risk of a large-scale buying program below the $1935/oz range.

Meanwhile, algos are unlikely to add to their shorts above the $1810/oz range, suggesting that prices are now in a no-man's-land for CTA flows for the time being. Given ongoing Shanghai selling activity, however, the risk of subsequent CTA selling activity may be more elevated.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD holds losses below 1.1850 near nine-day EMA barrier

EUR/USD extends its losses for the second successive session, trading around 1.1840 during the early European hours on Tuesday. The 14-day Relative Strength Index momentum indicator at 53 (neutral) signals consolidation with a modest upside lean.

When is the UK employment data and how could it affect GBP/USD?

The United Kingdom labor market data for the three months ending December is scheduled to be published today at 07:00 GMT. GBP/USD trades 0.16% lower to near 1.3610 at the press time. The 20-period Exponential Moving Average slips to 1.3631 and caps rebounds as price holds below the gauge.

Gold adds to intraday losses as risk-on mood offsets dovish Fed and subdued USD demand

Gold attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday. The commodity, however, quickly recovers to the $4,900 mark as traders opt to await more cues about the US Federal Reserve's (Fed) rate-cut path before placing fresh directional bets.

Pi Network rallies ahead of its first anniversary

Pi Network trades above $0.1800 at the time of writing on Tuesday, recording nearly 5% gains so far. On-chain data indicate that large wallet investors, commonly known as whales, have accumulated approximately 4 million PI tokens over the last 24 hours.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.