XAU/USD is back on the buying side – TDS

FXStreet Insights Team FXStreet

The top traders in Shanghai Futures Exchange (SHFE) Gold are piling back into the Yellow Metal, TDS Senior Commodity Strategist Daniel Ghali notes.

Traders pile back Gold longs

“After a month's pause in SHFE traders’ buying activity, positioning for the top traders in SHFE Gold is now rising at a fast clip towards its previous all-time highs set in 2024Q1. This is particularly interesting as it comes at a time when our tracking of Chinese flows also points to divestment from domestic Gold ETFs, suggesting that retail traders are not behind the bid, as was likely the case earlier this year.”

“The top traders on SHFE have now added +10t of Gold to their books over the last five trading sessions, driven almost exclusively by new longs. This also comes as discretionary traders are piling back into Comex Gold, with our analytics suggesting Gold length is potentially benefiting from the Trump trade in addition to expectations for a cutting cycle to commence.”

“Commodity Trading Advisors (CTAs) are also still on the bid, and our simulations of future scenarios suggest that CTAs are likely to buy both Gold and silver in most scenarios this week. Flows continue to be supportive of upside momentum.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

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.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.