Shanghai Futures Exchange (SHFE) continue to hold large positions in Gold (XAU/USD) and Silver (XAG/USD). Commodity Trading Advisors (CTAs) are set to add +16% to their historic max length in Platinum, TDS Senior Commodity Strategist Ryan McKay notes.

Precious Metals gain bullish traction

“Precious metals are gaining ground as the Chinese Yuan fix was its weakest since November. Top traders on the SHFE continue to hold large positions in Gold and Silver, while inflows continue into Chinese Gold ETFs.”

“In the West, traders are watching the data like hawks. Macro investors have remained underpositioned in the Yellow Metal relative to a typical cutting cycle and macro traders seem to be happy waiting on the sidelines until there is more certainty on the timing of the coming Fed cuts.”

“Looking forward, as a trend of weakening data begins to form, these investors will be more likely to enter the fray, which could ultimately be the next catalyst needed for another leg higher. Elsewhere, CTAs are set to double their net long position in Platinum, adding +16% of historic max length with all signals now firing long in the metal.”