💥 Gold & Silver Rout Driven by Positioning, Not Fundamentals — Société Générale
According to Société Générale, the recent sharp sell-off in gold and silver wasn’t due to weakening fundamental demand but was mainly caused by crowded market positioning unwinding as investors exited leveraged trades.
Key Facts:
• Precious metals have seen intense volatility and downward pressure amid broad market stress.
• Société Générale highlights positioning and liquidity dynamics as the primary drivers of the rout.
• This view suggests underlying fundamentals for gold and silver remain relatively intact despite sharp declines.
Expert Insight:
Heavy unwinding of speculative and leveraged positions can exaggerate price swings, meaning current drops may not reflect long-term demand fundamentals — positioning risk is front and center for traders right now.
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