The main traders in the Shanghai Futures Exchange (SHFE) have reduced their net positions in Gold (XAU/USD) and Silver (XAG/USD)TDS commodity strategists note that precious metals investors are likely to stay on the sidelines for the time being.
Precious metals stay on the sidelines
“Top traders on the SHFE have reduced their net positions in Gold and Silver by 8,600 and 11,600 lots respectively over the past week. This, along with a macro group that has yet to find its bullish conviction in the yellow metal, helps explain relatively weaker price action this week.”
“Elsewhere, PCE data came in roughly in line with expectations, with the pace representing the lowest level of the cycle. Overall, inflation data continue to gradually normalize back to the trend the Fed would like to see, but this is not yet enough evidence for officials to insist on policy easing.”
“In this regard, precious metals investors are likely to stay on the sidelines for the time being, however, there have been nascent signs that ETF holdings could be starting to turn around with holdings on track to record their first monthly increase since May 2023.”
