Deutsche Bank: Gold selling pressure is about to be exhausted, with the next rally potentially driven by active funds. CTA selling trigger is at $4315/oz.
Deutsche Bank's latest research indicates that systematic trading funds (CTA) buying, which has been driving the current gold rally, is nearing its end, while market selling pressure is also close to exhaustion. Daniel Ghali, Head of Metals Research at Deutsche Bank, stated in a report published on September 1 that this combination means precious metal prices could remain strong even if the Federal Reserve signals hawkishness. The baton for the next rally may pass to active discretionary traders. The report specifies that for CTAs to trigger the next round of selling, gold prices would need to fall below $4,315 per ounce.
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