Goldman Sachs analysis points out that the main reason for the recent continuous decline in gold prices is the large-scale liquidation of speculative capital positions rather than changes in real interest rates. According to data from the US Commodity Futures Trading Commission, between October 20 and 27, speculative traders net sold about 8 billion US dollars of gold positions, of which 5.2 billion US dollars came from closing long positions and 2.8 billion US dollars from new short positions. Since September 22, the gold market has had a net outflow of speculative capital for five consecutive weeks, with a cumulative scale of 19.5 billion US dollars. Goldman Sachs pointed out that from October 20 to 27, about 95% of capital outflows came from “other traders” and non-reporting traders, and as of October 27, such investors' long positions were still higher than the median of the past two years, which means there is still a risk of further liquidation in the future. From October 27 to 30, gold fell another 4.3%, and demand for bearish bets and downside hedging in the options market also increased markedly, indicating that short-term bearish sentiment in the market continues to heat up.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.