Cash managers stayed comparatively flat on Gold positioning. Economists at TD Securities count on lengthy positions to develop as soon as knowledge turns convincingly adverse.
Ambiguity with respect to the path Gold costs are anticipated to take
“There may be particular ambiguity with respect to the path Gold costs are anticipated to take. Some speculative buyers see Gold trending larger amid the implied Fed pause, which explains the lengthy place will increase. In sharp distinction, others see costs trending down in response to a agency Greenback, elevated charges and a bond unload.”
“Earlier than cash managers take a extra one sided view on the place the yellow steel will go, markets might want to see extra financial knowledge.”
“For now, it’s doubtless that cash managers might need to proceed to scale back size. Nonetheless, as soon as knowledge turns convincingly adverse and the Fed is seen to pivot forward of hitting its inflation goal, longs will develop robustly.”
