1Finance

Any Gold Dips Ahead Of Jackson Hole A Buying Opportunity - UBS

"Strong US data has weighed on gold, putting pressure on recent longs. CFTC data as of August 2 showed that net longs increased by 2moz bringing net length to 35.64moz or 96% of the record. Interestingly, part of the gains was offset by shorts adding to positions for the first time in a month. Higher-than-expected US nonfarm payrolls last Friday likely attracted some additional shorts. The challenge for gold in the near-term is a stronger dollar and positive risk sentiment on the back of recent strong US data."

"A rise in front-end yields heading into Fed Chair Yellen's speech at Jackson Hole on 26 August could weigh on gold. We would regard any further weakness up ahead as a potential buying opportunity, given our view that the macro story remains intact."

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