The breakout has driven the China Smart Money group of funds to add a significant amount of new length in SHFE gold. Considering that Shanghai gold net length remains near multi-year lows, a change in sentiment, potentially driven by the technical breakout, could attract a significant amount of buying interest from this cohort
With US real yields plummeting, the tides could sway the persistent waves of ETF sellers to add length
Gold prices need only close north of $1,860/oz to catalyze further CTA long acquisitions, which should cement a more supportive trend
...our ... framework, which stress-tests 75 technical indicators to identify the critical threshold for a change in trend, suggests that with gold prices north of $1,845/oz, an uptrend in gold should form by March 2022
