FXStreet reported Monday that TD Securities strategists see $4,092 an ounce as the level where commodity trading advisers could start covering gold shorts, as bullion traded above $4,000.
At 9:23 a.m. ET (13:23 UTC) on Oct. 26, Reuters quoted spot gold at $4,007.57 an ounce, up 0.3%. December U.S. gold futures rose 0.4% to $4,021.80 an ounce. Gold had touched about $3,975 Friday, but earlier EconoTimes coverage of its rebound recorded spot prices above $4,000 Sunday.
FXStreet attributed the assessment to TD Securities Senior Commodity Strategist Ryan McKay and Global Head of Commodity Markets Strategy Bart Melek. The outlet reported that they saw commodity trading advisers, or CTAs, short across all their trading signals, putting pressure on their longer-term bullish outlook. Their $4,092 figure is a forecast of when short covering might begin, not an observed price floor.
The Commodity Futures Trading Commission report showing positions as of Oct. 20 recorded 120,970 long and 16,764 short COMEX gold contracts in its Managed Money category, leaving the group net long 104,206 contracts. That broader category does not separately identify CTA positions and therefore does not directly measure the signals described by the strategists.
Earlier fund data showed inflows. The World Gold Council reported $10 billion flowing into global gold exchange-traded funds in September, while Chinese gold exchange-traded funds added 11 tonnes. The council linked Chinese fund demand to diversification amid weak equities and said buying continued into early October, based on data through Oct. 12.
China’s State Administration of Foreign Exchange recorded official gold holdings rising from 76.73 million fine troy ounces in August to 77.47 million in September, an increase of about 23 tonnes. The World Gold Council said the People’s Bank of China’s September addition was its largest since October 2023.
Reuters said lower oil prices had eased some inflation concerns ahead of the Federal Reserve’s policy meeting. Gold pays no yield, making the interest-rate outlook relevant to demand.
The Federal Reserve meets Oct. 27-28. The Bureau of Economic Analysis is scheduled to release September personal income and outlays data, including its inflation measure, at 8:30 a.m. ET (12:30 UTC) Oct. 29.
