XAU/USD: Markets come back to Gold – TDS
15.07.2024, 14:42

XAU/USD: Markets come back to Gold – TDS

Discretionary traders are piling back into Gold (XAU/USD) markets, TD Securities senior commodity strategist Daniel Ghali notes.

CTAs to continue buying Gold

“Discretionary traders are piling back into Gold markets. With this cohort now having accumulated its largest position of this cycle, our proxy suggests macro trader positioning in Gold is now somewhat larger than would be expected given the number of Fed cuts priced into rates markets over the next year.”

“It still remains far below the highs marked in past Federal Reserve (Fed) cutting cycles, which points to some scope for additional gains should expectations for the upcoming rate cutting cycle continue to deepen. Discretionary trader longs have also been building over the last weeks, in line with the Trump trade which is also attracting interest into the Yellow Metal.”

“Gold technicals also screen among the strongest across our Global macro radar, underscoring the high bar for Commodity Trading Advisor (CTA) trend followers before they are forced to liquidate more length. While the recent downdraft in gold had catalyzed some liquidations, CTAs are now likely to return to the bid without a significant reversal south of $2370/oz.”

 

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