Analysts aren’t giving up on gold, saying the precious metal’s safe-haven appeal hasn’t completely waned. However, according to the latest data from the Commodity Futures Trading Commission (CFTC), some hedge funds have lowered their bull exposure to gold as investors prepare for the Federal Reserve’s new tightening cycle. Analysts’ gold price expectations cryptocoin.com We have prepared for our readers.
Daniel Briesemann: There are still people who rely heavily on gold
For the week ended March 15, the CFTC’s disaggregated Commitments of Traders report showed money managers cut their speculative longs in Comex gold futures to 165,597 with 15,913 contracts. At the same time, short positions increased by only 523 contracts to 39,060. Gold’s net position stands at 126,537 contracts, down about 11.5% from the previous week. However, the bullish position rose more than 150% after hitting the lowest level in nearly a year at the beginning of February.
During the survey period, the gold price saw a sharp decline, but held the critical support around $1,900. Analyst Daniel Briesemann says that the speculative interest in gold is also reflected in gold-backed products traded in the stock market, noting that the market has seen entries for nine consecutive weeks. In a research note released Monday, the analyst comments:
ETF holdings are up over 120t since the start of the month and just over 200t since the start of the year. However, (CFTC speculative position) remains above average compared to the last 1.5 years. In other words, those who still rely heavily on gold as a safe haven and store of value prefer not only ETF investors, but speculative financial investors as well.
“Ukraine issue will continue to support the possibility of higher gold price”
Ole Hansen, head of commodities strategy at Saxo Bank, says he doesn’t expect safe-haven demand for the precious metal to dry out completely. “The long-term liquidation of leveraged funds loaded on gold futures in recent weeks seems to have completed its course, while long-term investors remain gold ETF buyers since the war began,” the Strategist wrote in a note Monday. The strategist explains the issue as follows:
As inflation continues to rise, we remain optimistic that central banks may find it difficult to apply the brakes at the risk of an economic slowdown. We believe that the Russia-Ukraine crisis will continue to favor the possibility of a higher gold price, not only because of a potential short-term safe-haven offer that will fluctuate, but more importantly because of what this tension means for inflation.
Two different perspectives for the gold price
Some analysts state that it is not surprising that some investors reduced their gold positions ahead of the Federal Reserve’s monetary policy announcement. However, many analysts say that gold is now on a clear rise after the central bank announced its interest rate plan.
Last week, after raising interest rates by 25 basis points, the Federal Reserve lowered its growth forecast and raised its inflation expectations for 2022. At the same time, the central bank sees the potential for seven rate hikes this year.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.