The yellow metal entered into new territory — dry-powder positioning, which measures per-trader exposure, is off the charts, analysts at TD Securities reports.
“With more than 56bp of rate cuts pricedin by year-end and equities deeply in the red following some signs of herding into momentum trades in tech stocks, the fear factor has further driven a swarm of safe-haven flows towards gold.”
“The structural bid in gold should keep investment capital flowing towards the yellow metal, driven by real rate suppression from global central banks who remain willing to let inflation overshoot for some time.”
“The risk of a near-term pullback is as high as its ever been. In this context, we expect flows from CTAs to remain muted as algorithmic trend followers remain well positioned for the precious metal bull market.”
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.