Gold's silently repricing the US Dollar - TDS

The US Dollar (USD) is partly losing its store-of-value function -- a macro theme that has already occurred many times through history. Gold is capturing a portion of that store-of-value function, TDS' Senior Commodity Strategist Daniel Ghali notes.

SGE's Gold expansion hints at a bigger game in currency chess

"Gold's overbought but undersold positioning dynamic, central banks' appetite for Gold, and Gold's apparent disconnect with traditional indicators such as the USD, US rates, and risk appetite are a symptom of this."

The SGE's expansion to Hong Kong seeks to capitalize on this megatheme by promoting yuan-denominated trading in Gold's largest market, which seeks to make inroads in a different-but-related theme: the USD's reserve-currency status. Reserve currency status isn't lost overnight, but in the context of MAGAxit, this only represents one move on the grand chessboard."

"For the time being, the détente on trade has eased Gold's buying impulse, but sentiment is poor, and with participation as low as it is today, we struggle to see Gold prices sustainably lower. Instead, we see several catalysts on the horizon for the next buying impulse."