According to Deep Tide TechFlow, gold prices have further declined from last week's record high as traders rushed to close positions due to an overheated market. In early Asian trading, gold prices fell by 0.4% to $3305, down more than 5% from last Wednesday's peak.
Barclays Bank pointed out that the trading volume of SPDR Gold Shares ETF exceeded 1.3 million contracts, indicating that the market is overheated in the short term, with prices exceeding fundamental factors. Analyst Stefano Pascale believes that gold prices will decline as the technical indicators are overextended.
Data from the U.S. Commodity Futures Trading Commission shows that hedge fund managers have cut their net long positions in gold futures and options to the lowest level in 14 months.