Analyzing the Gold Market Post-Election

As the dust settles after the US election, the Gold market is experiencing significant fluctuations that are worth exploring. Let’s dive into the latest insights from TDS’ Senior Commodity Strategist Daniel Ghali:

Impact of Event Risk

  • There has been a pent-up selling activity unleashed by the event risk surrounding the US election.
  • Although the price action may appear oversold, liquidations have not reached extreme levels.
  • CTAs have only shed 10% of their maximum size so far, with potential for further selling pressure in the near future.

Positioning Cues and Market Dynamics

  • Macro funds and Shanghai traders are showing extreme positioning cues, with significant selling activity observed.
  • Shanghai traders have been selling at their fastest pace in years, adding pressure on Gold prices.
  • Physical markets are experiencing lackluster buying activity, contributing to the downward pressure on Gold.

Outlook for Silver

  • While Silver’s price action has been relatively contained, its positioning set-up has deteriorated.
  • Simulations suggest incoming selling activity in various scenarios for market prices in the coming week.
  • Silver may align with Gold’s performance as precious metals navigate through these challenging market conditions.

Understanding the Market Trends

It’s essential to grasp the underlying trends and dynamics shaping the Gold and Silver markets post-election. The insights provided by Daniel Ghali shed light on the current state of these precious metals. As investors and market participants, it’s crucial to stay informed and navigate through these turbulent times with caution and strategic decision-making.

Shares: