Gold: CTA selling limits upside below $4,400 - TD Securities
TD Securities’ commodity strategists report that Gold is holding gains after weaker US jobs data reduced perceived Fed hike risks, but CTAs (Commodity Trading Advisors) are unwinding length.
TD Securities' analysts assert that gold is benefiting from softer-than-expected US employment data, which has diminished the likelihood of Federal Reserve interest rate increases. However, commodity trading advisors (CTAs) are reducing their exposure as they contend that the "stagflation" narrative must intensify for gold prices to surge further.
They contend that gold prices must surpass $4,400 per ounce for CTAs to resume accumulating positions. Amidst the stabilization, strong demand from leading Shanghai Futures Exchange (SHFE) traders and sustained inflows into exchange-traded funds providing exposure to gold offer some support. Meanwhile, CTAs are beginning to unwind their positions, with gold prices needing to surpass $4,400 to regain additional leverage.
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