- Gold's three-week short squeeze, driven by safe-haven demand due to renewed geopolitical uncertainty, has run its course according to the latest trade data from the Commodity Futures Trading Commission.
Some analysts have said that the Federal Reserve's tightening bias, as it looks to keep interest rates in restrictive territory for the foreseeable future, is keeping some investors on the sidelines of the precious metal. They have said that until the Federal Reserve sends a clear message that its next move will be a rate cut, gold could be stuck in neutral within these elevated prices.
Gold's net length has risen to 74,840 contracts, its highest level since August. During the survey period, gold prices traded on either side of $2,000 an ounce.