Hedge Funds continue to liquidate bullish gold bets; However, the latest trading data from the Commodity Futures Trading Commission (CFTC) shows they are also hesitant to place any significant bearish bets. In this environment, analysts explain their expectations for the gold price.
“This situation creates a challenging environment for the gold price”
As we have reported as cryptokoin.com , the gold price will be briefly 1.800 at the beginning of the week. Although it fell below the dollar, the yellow metal managed to recover afterward. At the time of writing, gold was trading at $1,830. According to analysts at TD Securities, sentiment is weak on precious metals and high positioning analytics are still discussing the potential additional pain for gold bugs.
According to some analysts, data shows that the bullish momentum in the US dollar combined with the sell-off in the bond market creates a challenging environment for the gold price. At the same time, analysts state that increased volatility in the stock markets supports gold as a safe-haven asset.
“Gold price will be below $1,700 by the end of the year”
Many analysts believe that inflation remains the critical unknown factor for gold price. says he does. Market analysts say that if inflation data peaks, real returns, which have recently turned positive, could rise even higher, creating some competition for the gold price. Chris Vecchio, senior market strategist at DailyFX.com, comments in a recent interview:
Eventually, real rates will rise, which is bad news for gold. It’s only a matter of time before gold can trade comfortably below $1,800. I expect gold prices to be below $1,700 by the end of the year.
Speculative position changes in gold futures
CFTC’s Commitments of Traders report for the week ended May 10, money managers’ Comex gold showed that it reduced its speculative gross long positions in its futures transactions to 123,931 with 4,897 contracts. At the same time, short positions increased by 958 contracts to 61,939.
Gold’s net position now stands at 67,847 contracts, down 8.6% from the previous week. Gold’s net position fell to a new three-month low as it fell for four weeks in a row. During the survey period, the price of gold fell below $1,850.
Ole Hansen: Gold continues to struggle technically
Saxo Bank head of commodities strategy Ole Hansen, from the peak of the bull position in March It records more than 58% drop. The head of strategy underscores in a note:
Gold continues to struggle technically with a break above the 200-day moving average at $1,838 needed for this to change.
Meanwhile, analysts say silver, which has appreciated as a monetary metal and an industrial metal, continues to outperform gold.
