According to TDS’ Senior Commodity Strategist Daniel Ghali, the current state of the Gold market presents a unique opportunity. The recent drop in aggregate open interest for CME Gold, which is now near all-time lows at 425k, has historically been a sign of low Gold prices. This is despite a strong macroeconomic case for the precious metal. It highlights the fact that while Gold may seem like a popular trade, it is actually under-owned. This is surprising given the ongoing trend of Gold’s value increasing as the USD loses its status as a store of value. Ghali emphasizes that Gold’s surge is not driven by demand, but rather by faith in its reliability. He predicts that open interest will soon rise as part of regular market activity and expects significant buying from CTAs in the coming week, with automated algorithmic buying projected to increase by 4%. This trend is likely to continue and intensify leading up to next week’s NFP report, potentially reaching up to 30% of maximum algorithmic buying activity. With macro funds having minimal activity in Gold post-liberation day, ETF holders showing signs of selling fatigue, and expectations of CTA inflows, Gold prices are likely to be boosted by positioning alone. Any sudden shifts in trade policies could trigger a further surge in buying activity this summer.