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Gold holds gains as CTAs unwind length below $4,400 an ounce

TD Securities said weaker US jobs data cooled perceived Fed hike odds, but CTAs are reducing long exposure, and additional re-length is tied to gold trading above $4,400 per ounce.

Reported · Written up by our desk · Precious Metals

Gold is holding onto gains after weaker US jobs data reduced market expectations for imminent Fed hikes, according to TD Securities commodity strategists as summarized by FXStreet.

The strategists said CTAs, or Commodity Trading Advisors, are unwinding long positions even as the metal remains supported by an improving stagflation narrative, driven in part by energy prices rising again.

They added that for CTAs to re-add length, gold would need to move above $4,400 per ounce, a level the article flagged as a threshold for commodity program activity.

FXStreet also noted that gold pulled back slightly but stayed well above $4,300 per troy ounce, with the move tied to developments in the Fed’s rate outlook and Middle East developments.

Latest closeGold $4,292.00 ▲1.1%

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