China has recently resumed buying precious metals, causing a bullish trend in the market. Shanghai Futures Exchange (SHFE) traders are holding large positions in Gold and Silver, while Commodity Trading Advisors (CTAs) are expected to increase their net long position in Platinum by 16%.
The Chinese Yuan fix being at its weakest since November has contributed to the rise in precious metals. In China, Gold ETFs are seeing continued inflows, indicating a strong interest in the precious metal. On the other hand, Western traders are closely monitoring market data. Macro investors are currently underpositioned in Gold compared to a typical cutting cycle, and macro traders are waiting on the sidelines for more clarity on the timing of the upcoming Fed cuts.
As economic data shows signs of weakness, investors may become more active in the market, potentially driving prices higher. Additionally, CTAs are gearing up to double their net long position in Platinum, signaling a positive outlook for the metal.
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Overall, the resumption of buying activity in precious metals by China has had a positive impact on the market, with potential for further growth as economic conditions evolve. Investors should stay informed and cautious while navigating these trends in the precious metals market.