John Reade Profile picture
Market Strategist at the World Gold Council

Aug 27, 2019, 7 tweets

#Gold is just above $1530/oz in Tuesday morning trading, slightly higher than the US close on Monday and today’s Asian range.

With London out for a (sunny) bank holiday, I missed the extraordinary Asian range on Monday.

I’m not sure what the trigger was, although I suspect concern about the skirmishes in the looming trade war were to blame.

The Shanghai Gold Exchange was one venue where the move in #gold played out, with heavy volume seen in the T+D contract, taking August to a record.

ETFs have continued to build tonnage over the past few days and based on our proprietary database have added just shy of 100t of #gold this month, with US-listed ETFs the heaviest buyers.

Comex trading speculators added to net-long #gold positions in the week to last Tuesday and now hold record net long positions according to my calculations...

...but as I explained last week I’m less concerned about this than I would have been 5 years ago: the move by many from OTC to exchange for #gold exposure MAY have made this less threatening than it seems.

With Real US 10-year yields in negative territory, although less negative than seen in early-Monday lows, its clear that macro factors are driving gold for now and that will likely make for a choppy outlook.

Look out for more insights on the #goldhub #blog.

Best of luck!

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