XAU/USD is back on the buying side – TDS
16.07.2024, 14:52

XAU/USD is back on the buying side – TDS

The top traders in Shanghai Futures Exchange (SHFE) Gold are piling back into the Yellow Metal, TDS Senior Commodity Strategist Daniel Ghali notes.

Traders pile back Gold longs

“After a month's pause in SHFE traders’ buying activity, positioning for the top traders in SHFE Gold is now rising at a fast clip towards its previous all-time highs set in 2024Q1. This is particularly interesting as it comes at a time when our tracking of Chinese flows also points to divestment from domestic Gold ETFs, suggesting that retail traders are not behind the bid, as was likely the case earlier this year.”

“The top traders on SHFE have now added +10t of Gold to their books over the last five trading sessions, driven almost exclusively by new longs. This also comes as discretionary traders are piling back into Comex Gold, with our analytics suggesting Gold length is potentially benefiting from the Trump trade in addition to expectations for a cutting cycle to commence.”

“Commodity Trading Advisors (CTAs) are also still on the bid, and our simulations of future scenarios suggest that CTAs are likely to buy both Gold and silver in most scenarios this week. Flows continue to be supportive of upside momentum.”

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