- Gold prices are seeing a significant push higher, driven by safe-haven demand as Israel's war with Hamas creates further chaos in the Middle East.
Speculative interest in the gold market is now net short 7,561 contracts. Bearish positioning in the precious metal is at its highest level since early November. Fred Hickey, creator of The High-Tech Strategist investment newsletter, noted in a comment on social media that net-short positioning has marked the bottom in the gold market for the last eight years. He added that each market bottom has been progressively higher than the next, which could mean the subsequent short-squeeze positioning could take prices to record highs.
— fred hickey October 6, 2023 It's not only gold's extreme bearish positioning supporting renewed optimism in the market. Some see the potential for higher prices as the bond market could be on the cusp of a turning point. Some analysts also note that as bond yields have room to move higher, gold still has room to move lower.