Gold prices are being supported by strong discretionary buying and increased demand from Asian investors, even as Commodity Trading Advisors (CTA) have maintained steady positions. This dynamic highlights a divergence in market participation, where traditional CTA momentum strategies have plateaued while other buyers continue to drive demand.
According to FX Street, TD Securities strategists Ryan McKay and Bart Melek emphasize that this robust buying interest is a key factor underpinning the current strength in gold. The sustained Asian appetite for the precious metal remains a significant influence amid global economic uncertainties.
For Japanese investors, these trends are particularly relevant given gold's role as a safe-haven asset and its sensitivity to shifts in regional demand, which can impact both FX and equity market sentiment domestically.