Thread by @JReade_WGC

#Gold: Languishing around $1284/oz this morning following the correction from its recent highs.

(short thread)

Gold: I’ve been out of the office for a fortnight due to a holiday and some business travel and have missed much of the move lower. #Gold’s decline doesn’t appear to be due to a large strengthening of the US dollar.

2/8

Gold: Nor is the sell-off in #gold due to a large move in Real US Treasury Yields.

3/8

Gold: US equities have continued to recover from the nightmare before Christmas sell-off, and this may have detracted a little from #gold.

4/8

Gold: CFTC positioning continues to catch up, but the increase in net longs seen in the last report published (for 19 Feb) does show a large build in net longs as #gold moved towards its highs.

(1 can't wait for this to be up-to-date and regular again)

5/8

Gold: ETF holders sold #gold in February (we’re still finalising our numbers) and have continued to sell gold in early March.

6/8

Gold: And looking at changes in Comex open interest, which has fallen along with the price decline, indicating that speculators cut long positions in #gold – they may have added some shorts too.

7/8

#Gold: So, I think my conclusion is that this is a mostly technical correction from an overbought position (RSI was above 70, CFTC spec longs extended, ETF inflows, etc) triggered by ongoing US equity market recovery & trade deal hopes. Nothing really fundamental I can see.

8/8

Good morning @threadreaderapp. Please unroll