- Analytics
- News and Tools
- Market News
- Gold could see heavier selling from Shanghai — TDS
Gold could see heavier selling from Shanghai — TDS
Analysts from Toronto-Dominion Securities (TDS) have noted that short activities in Gold could be on the rise, and originating from China.
Shanghai traders selling into the safe-haven bid in Gold
As Chinese traders return to their seats following Golden Week holidays, our tracking of the largest participants in SHFE gold markets points to evidence that they have begun liquidating their bloated gold length, with 5.5k SHFE lots of net length sold over the last two trading sessions.
These liquidations represent approximately 13.5% of their total net length, and brings their net position a nudge closer to their average year-to-date position. At the same time, while the safe-haven bid may spark marginal buying activity from CTA trend followers this session, our positioning analytics argue for little risk of a large-scale buying program below the $1935/oz range.
Meanwhile, algos are unlikely to add to their shorts above the $1810/oz range, suggesting that prices are now in a no-man's-land for CTA flows for the time being. Given ongoing Shanghai selling activity, however, the risk of subsequent CTA selling activity may be more elevated.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
