Gold and silver are max long – TDS

CTAs are “max long” gold and silver, but the margin of safety against algo liquidations in gold still remains high, notes TDS commodities analyst Daniel Ghali.

There are no directional short stays in the gold markets

“This print is the first significant challenge to the consensus narrative that has attracted enough capital for our positioning measures to scream extremes on multiple fronts, but liquidations still remained minuscule, suggesting geopolitical fears are holding back liquidation.”

“Contrary to what the price action implies, recent weeks have not seen massive inflows into gold according to our positioning analysis, but rather indicate a liquidity vacuum with few sellers in the stratosphere.”

“After all, money managers’ shorts are now heavily tied to EFPs, suggesting there is almost no directional shorts left in the gold markets. Conversely, silver prices have a smaller margin of safety from the first selling schedule, but if emerging signs of reflationary trends persist, silver and base metals are a superior expression.”