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Major traders on the Shanghai Futures Exchange (SHFE) reduced their net positions in gold (XAU/USD) and silver (XAG/USD). Commodity strategists at TDS suggest that precious metals investors are likely to remain on the sidelines for now.
Precious metals remain on the sidelines.
“The top traders in SHFE have reduced their net gold and silver Positions decreased by 8.6K and 11.6K lots respectively over the past week. This, coupled with a group of investors who have yet to find their bullish conviction on the yellow metal, helps explain the relatively weaker price action. this week“
“Elsewhere, personal consumption expenditures data came in roughly in line with expectations, and the pace represents the bottom of the cycle. Overall, inflation data continues to gradually return to the direction the Fed would like to see, but it is still not enough to demonstrate officials’ ability to discuss… Easing monetary policy.
“In this sense, precious metals investors are likely to remain on the sidelines for now, however, there have been emerging signs that ETF positions may be starting to turn for the better with holdings on track to record their first monthly increase since May 2023.”
