CFTC: Investors continued to shed long gold exposure - TD Securities
Commenting on the weekly CFTC report, "Investors acquired new shorts and continued to shed long gold exposure ahead of the Fed's rate decision, which was expected to yield a hike," TD Securities analysts said.
Key quotes
"The prospects of higher US policy rates, which were reinforced by increasing 2yr yields, along with the drift lower in prices over the summer, have left net positioning near historic lows. Recent signs of waning US strength should help specs to look beyond Wednesday's FOMC communique and find the courage to cover and lift prices."
"Meanwhile, decreasing trade-related EM angst following a less severe US trade action against China, prompted specs to aggressively cover short exposure in platinum and add length in palladium as sentiment improved."
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
