CTAs poised to drive Gold higher – TDS

CTAs will still buy Gold regardless of any scenario this coming week. We expect imminent algo buying activity to persist and accelerate into NFP, potentially tallying up to a massive +30% of algos' max size, TDS' Senior Commodity Strategist Daniel Ghali notes.

Silver buying gathers momentum

"Western funds surprisingly don't have much Gold to sell with macro funds largely net flat in the yellow metal, and considering that ETF inflows have been bolstered by a change in strategic asset allocations which mitigate the scope for outflows."

"This reflects a combination of re-levering from long/short quant funds following the aftershock from Liberation day, along with vol-control and rising signal strength. Only retail ETF holders are vulnerable, but persistent central bank buying activity should be sufficient to offset outflows from this cohort."

"Recent signs of selling exhaustion from both Chinese and Western ETFs suggest that the window has now opened for Gold prices to strengthen as a function of positioning. This session, we also expect large-scale buying activity in Silver to be additionally supported by improving trend signals."