Top traders on the Shanghai Futures Exchange (SHFE) have reduced their net Gold (XAU/USD) and Silver (XAG/USD) positions. Precious metals investors are likely to remain on the sidelines for the time being, TDS commodity strategists note.
Precious metals remain on the sidelines
“Top traders on the SHFE have reduced their net Gold and Silver positions by 8.6k and 11.6k lots respectively over the course of this past week. This, along with a macro cohort that has yet to find their bullish conviction on the Yellow Metal, helps explain the relatively weaker price action this week.”
“Elsewhere, the PCE data came in roughly in line with expectations, and the pace represents the lowest level of the cycle. Overall, inflation data continues to gradually normalize back to the trend the Fed would like to see, but it is still not enough evidence for officials to pound the table on policy easing.”
“In this sense, precious metals investors are likely to remain on the sidelines for the time being, however there has been nascent signs the ETF positions could be starting to turn a corner with holdings on course to post their first monthly increase since May 2023.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/traders-drop-their-xau-usd-and-xag-usd-positions-tds-202406281524