Gold: Short covering signals renewed bullish momentum - TD Securities

TD Securities’ Ryan McKay and Bart Melek highlight that CTAs (Commodity Trading Advisors) are covering Gold shorts, with positioning rising by around 7% of maximum historical size. They note renewed inflows into Chinese Gold ETFs after the holiday and continued global ETF demand. The strategists argue that persistent geopolitical, fiscal and stagflation risks support flows and set up a potential Gold bull run into 2027.

CTAs cover shorts as ETF inflows return

"CTAs are covering shorts across gold and platinum as strong fundamental backdrop for precious metals insulates the market."

"The yellow metal is gaining on the day with CTAs back on the bid, covering shorts by some 7% of historic max position size."

"Geopolitical risk, fiscal concern, dollar debasement, de-dollarization and stagflation concerns all remain major supportive factors for these flows in gold."

"We continue to see the stage being set for the yellow metal to disconnect from real rates further and begin a new bull run into 2027."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)