Gold Prices Set to Decline as Long Liquidations Take Hold, Predicts TDS
Gold Market Analysis: Will The Gold Bugs Manage to Survive the Wave of Selling Activity? The recent price action in the gold market has led to significant selling activity from macro funds and systematic trend followers. TDS senior commodity strategist Daniel Ghali notes that yellow metal longs are being sold in Shanghai, indicating a notable stand-out in the market. Despite this, both algorithms and macro funds continue to hold onto the bulk of their length, with aggregate readings of money manager positioning still near cycle highs. There is a unilaterally bullish consensus on gold. However, it's important to note that gold won't protect against a deleveraging event. On the other hand, signs of selling activity persist in Shanghai as top traders continue to shed some net length in gold. A trend of long liquidations has been somewhat concealed by simultaneous short covering. Gold Prices Set to Decline as Long Liquidations Take Hold, Predicts TDS The prediction of decli...