Money managers stayed relatively flat on Gold positioning. Economists at TD Securities expect long positions to grow once data turns convincingly negative.
Ambiguity with respect to the direction Gold prices are expected to take
“There is definite ambiguity with respect to the direction Gold prices are expected to take. Some speculative investors see Gold trending higher amid the implied Fed pause, which explains the long position increases. In sharp contrast, others see prices trending down in response to a firm Dollar, elevated rates and a bond sell off.”
“Before money managers take a more one sided view on where the yellow metal will go, markets will need to see more economic data.”
“For now, it is likely that money managers may want to continue to reduce length. However, once data turns convincingly negative and the Fed is seen to pivot ahead of hitting its inflation target, longs will grow robustly.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends slide after ECB Minutes, awaits US Retail Sales
EUR/USD extends its fall below 1.0300 in European trading on Thursday. Despite risk appetite and a softer US Dollar, the pair struggles due to dovish ECB Accounts, as a 50 bps rate cut was on the table. US Retail Sales are next.
GBP/USD holds losses around 1.2200 after dismal UK data
GBP/USD is battling 1.2200 in the European session on Thursday. The pair faces headwinds from disappointing UK GDP and industrial figures for November, increased bets of BoE rate cuts and a steady US Dollar. US Retail Sales and Jobless Claims data are next on tap.
Gold enjoys third day of gains in a row as yields retreat
Gold’s price edges higher for the third day in a row and recovers initial weekly losses, rising above the $2,700 level at the time of writing on Thursday. The recovery comes in the run-up and release of the December US Consumer Price Index (CPI) data on Wednesday.
Bitcoin holds near $100K ahead of Donald Trump's inauguration
Bitcoin's price edges slightly lower and trades around $99,200 on Thursday after rallying 4% following the previous day’s US CPI release. Despite this recent rise in BTC prices, traders should keep watch on US Retail Sales data for December on Thursday, as it could provide more volatility.
Eurozone industrial production ticked up in November
The slight 0.2% rise in production from October is insufficient to indicate a reversal of the two-year downward trend. Overall, the outlook for industry remains quite weak at the start of the year.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.