On August 1st, on the eve of the "tariff deadline," hedge funds bet on gold, with long positions reaching the highest level since April
As of the week ending July 22, hedge funds have increased their net long positions in gold by 19%, reaching 170,868 contracts, a new high in 16 weeks
As the "tariff deadline" approaches, risk aversion sentiment is rising, and hedge fund bullish bets on gold have reached their highest level since April.
Before progress is made in US-EU trade negotiations, hedge fund managers have increased their bullish bets on gold. According to data from the Commodity Futures Trading Commission, as of the week ending July 22, hedge funds have increased their net long positions in gold by 19%, reaching 170,868 contracts, the highest level in 16 weeks.
Market volatility and economic uncertainty caused by the trade war have prompted investors to seek safe-haven assets like gold, providing sustained upward momentum for precious metal prices. Gold prices have risen by 27% this year.
The rise in gold long positions is also benefiting from continued purchases by global central banks, which provide additional support for gold prices.
Analysts say that while a potential easing of trade tensions may weaken market demand for safe-haven assets, gold still receives strong support from central bank purchases, as countries continue to increase their gold reserves, providing a solid fundamental support for gold prices
