Is the latest rally stage in Gold a stop-and-go hunt? – TDS

The timing of gold’s foray into new all-time highs struck some market watchers as odd, but the latest CFTC positioning data is helping to inform price action, notes Daniel Ghali, senior commodities strategist at TDS.

The last stage of the rally could be associated with a short squeeze

“Several property traders, family offices and macro funds joined the dark side in the previous week, initiating some shorts ahead of the highly anticipated start of the Fed’s tapering cycle.”

“Meanwhile, our Macro Fund Net Positioning indicator has declined over the past week, which, along with highs for CTA positioning and concomitant liquidations from traders in Shanghai, reveal that the latest leg of the rally may have been associated with a short squeeze.”