{"id":632842,"date":"2026-07-09T17:20:00","date_gmt":"2026-07-09T17:20:00","guid":{"rendered":"https:\/\/buglecall.org\/?p=632842"},"modified":"2026-07-09T17:20:00","modified_gmt":"2026-07-09T17:20:00","slug":"gold-selloff-seen-as-stop-loss-liquidation-positioning-reset-not-fundamentally-driven-2","status":"publish","type":"post","link":"https:\/\/buglecall.org\/?p=632842","title":{"rendered":"Gold Selloff Seen As “Stop-Loss Liquidation Positioning Reset”, Not Fundamentally Driven"},"content":{"rendered":"

Gold Selloff Seen As “Stop-Loss Liquidation Positioning Reset”, Not Fundamentally Driven<\/span><\/p>\n

\n

Gold\u2019s break below key technical support of 4050 to the 4023 low in New York trading on Wednesday appears\u00a0driven primarily by stop-loss liquidation and positioning rather than a material deterioration in macro fundamentals<\/strong>, according to UBS.\u00a0<\/p>\n

\"\"<\/a><\/p>\n

As the bank’s trader Marcus Millis writes, “the move flushed out long exposure and left positioning looking more balanced, reducing the immediate risk of further forced selling.”<\/strong><\/p>\n

However, he cautions, the broader trading backdrop remains challenging. That’s because with front-end USD rates expected to stay under pressure, upside in gold looks limited, and rallies are still viewed as opportunities to reduce exposure rather than chase higher prices.<\/p>\n

Near-term support should emerge around recent lows at 4040-50 with resistance at 4110\/20, but conviction for a sustained rebound remains low.<\/p>\n

That said, the long term fundamentals remain especially solid<\/strong>, and patient holders who would rather collect income from gold <\/a>as a “productive” metal until its next breakout, rather than a passive, not-yielding asset, can check out the offerings from our partner <\/a>Monetary Metals.\u00a0<\/p>\n

Case in point: as we reported a few weeks ago <\/a>when analyzing the\u00a0World Gold Council’s 2026 Central Bank Gold Reserves Survey, the punchline\u00a0was that\u00a0a record 45% of respondents expect their own gold reserves will increase over the next 12 months<\/strong><\/p>\n

\"\"<\/a><\/p>\n

Central banks have accumulated an average of 1,000t of gold over the past four years, up significantly from the 500t average over the preceding decade. <\/strong>This marked acceleration in the pace of accumulation has occurred against a backdrop of geopolitical and economic uncertainty, which has clouded the outlook for reserve managers.<\/p>\n

The WGC’s 2026 Central Bank Gold Reserves (CBGR) survey was conducted between 5 February and 19 May. With the majority of responses coming in after the start of the Middle East conflict, this year\u2019s survey contains insights on how central bankers view gold in the light of ongoing geopolitical turmoil.\u00a0The sample is highly representative of the overall central bank community, both geographically and in terms of gold owned. This robust participation is a powerful signal of engagement with gold amongst the central banking community.\u00a0<\/p>\n

Here are some more of the notable highlights:<\/p>\n