Ryan McKay, Senior Commodity Strategist, observes that gold is facing selling pressure from Commodity Trading Advisors (CTAs) amidst fluctuating price movements. Despite this, recent developments following the Federal Reserve meeting have sparked renewed demand for the precious metal.
The week started with weaker trading in precious metals, attributed in part to ongoing price volatility. However, consecutive reports of lower-than-expected inflation figures, coupled with the Fed‘s less aggressive stance, have bolstered interest in gold.
McKay notes, “Plenty of uncertainty persists regarding the timing of anticipated rate cuts, and macro positioning remains sensitive to data surprises in the short term.”
Regarding recent market behavior, McKay highlights that while CTAs have initiated some selling amid the back-and-forth price action in gold, there is potential for these positions to be reinstated if prices climb back above the $2,354 per ounce threshold.
The dynamics in the gold market continue to evolve against a backdrop of economic data releases and central bank policy decisions, influencing investor sentiment and trading strategies moving forward.
