Gold’s long-term bullish case is being tested as spot and futures prices oscillate around $4,000/oz. Commodity Trading Advisors are short across all signals, while systematic funds have been selling as short positions are triggered across momentum indicators. Early-stage ETF liquidations have added pressure, with outflows described as particularly coming from China.
Even so, prices have dipped below $4,000/oz and then rebounded in short order, pointing to resilient price action. ETF flows have eased in the near term, while central bank demand continues to provide support when prices trade in this territory. Short-covering from CTAs is flagged as a risk above $4,092/oz.
Systematic Selling And ETF Outflows
Gold’s long-term bullish case is being tested as spot and futures prices oscillate around $4,000/oz. Commodity Trading Advisors are short across all signals, while systematic funds have been selling as short positions are triggered across momentum indicators. Early-stage ETF liquidations have added pressure, with outflows described as particularly coming from China.
Resilient Price Action And Central Bank Support
Even so, prices have dipped below $4,000/oz and then rebounded in short order, pointing to resilient price action. ETF flows have eased in the near term, while central bank demand continues to provide support when prices trade in this territory. Short-covering from CTAs is flagged as a risk above $4,092/oz.
