XAU/USD and XAG/USD lose their longs – TDS
12.07.2024, 14:33

XAU/USD and XAG/USD lose their longs – TDS

Gold (XAU/USD) traded strong Thursday, commodity trading advisors (CTAs) are unwinding a portion of their length. As for Silver (XAG/USD) top Shanghai Futures Exchange (SHFE) funds promptly reduced their net position by 9k lots, TDS commodity traders note.

Asian demand is set to remain strong

“Despite the strong move yesterday in Gold, CTAs are unwinding a portion of their length, needing to see prices comfortably above $2,437/oz to add back more length. While some money managers may be taking profits near all-time highs, the below-expected inflation data and softer employment data bolstered expectations of a September start to the Fed cutting cycle.”

“The first evidence of renewed interest is starting to show as ETF positions continue to rise in July, after June saw the first monthly increase since May 2023. While Chinese Gold reserves were flat for a second consecutive month amid their noted pause in buying, top traders on the SHFE have added back to their net positions, highlighting Asian demand is set to remain strong.”

“As for Silver, after the noted sizable build in positioning, top SHFE funds promptly reduced their net position by 9k lots overnight, while CTAs could also turn sellers below $30.78/oz.”

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