International gold prices have surged by $300 in a few days; analysis suggests it's experiencing a short squeeze and the rally may be far from over.
Wallstreetcn analysis points out that within just a few trading days, international gold prices have surged by approximately $300, completely reversing the previous volatile consolidation pattern. The market is experiencing a typical "short squeeze" rally. The main forces driving this round of increase are CTA trend trading funds covering their short positions due to stop-losses, the realization of a weaker dollar expectation, and a large amount of speculative capital that has not yet completed position rebuilding. Although short-term technical indicators are clearly overbought, market participants believe that the easiest "catch-up rally" of this round has ended, and a new round of increases truly driven by funds chasing the rally might have just begun. In addition, renewed strong central bank gold purchases also provide long-term support for gold.
Source:华尔街见闻 · Source Link
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