Fundamental overview of the price of Gold
A strong extension of the bearish move, however, still appears limited as traders may refrain from placing aggressive bearish directional bets ahead of major US macroeconomic releases, starting with durable goods orders that will be released this afternoon.
Attention, however, will remain glued to the preliminary US first quarter GDP data and the Personal Consumption Expenditure Price Index (PCE index). This data will be examined for guidance on the Federal Reserve’s rate cut path, which will drive demand for the US dollar and help determine the yellow metal’s near-term trajectory.
Instead, from the usual weekly Commitments of Traders (COT) report of the Commodity Futures Trading Commission (CFTC), which, remember, provides a detailed analysis of institutional net positions towards a specific asset (in this case the yellow metal ) on the US futures markets, there is an interesting situation.
In fact, institutional positions have been hovering around 200K for several weeks, underlining that they are awaiting the first important macroeconomic releases before placing bets.
