Gold price trends is reaching new heights, supported by significant market activity. This surge is set to shape the market’s future, as noted by Daniel Ghali, Senior Commodity Strategist at TDS.
Strong Price Action Fuels Massive Gold Buying
Recent gold price trends have triggered the largest gold buying program since the summer of 2024. TDS highlights that CTA trend followers are preparing to increase their exposure to gold by approximately 14% of their maximum capacity. This momentum provides a strong foundation for prices to reach new all-time highs.
Resilient Precious Metals Amid USD Rally
Despite a persistent rally in the US dollar, precious metals have held their ground. TDS’ analysis suggests that macro funds are ready to reallocate their capital toward gold. Elevated geopolitical tensions, rising US 10-year yields, and restrained interest rate cuts (just 1.5 projected for this year) are contributing to this trend. These factors indicate that macro investors view gold as a reliable hedge against ongoing uncertainties.
Market Signals Suggest Further Relief for Gold
The gold market has also experienced easing in EFPs (Exchange for Physical), offering significant relief without impacting flat prices. Mystery buying, combined with a renewed interest from macro funds, highlights the robust demand for the yellow metal.
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