Analyst: Recent gold market trends show obvious signs of "short squeeze" characteristics

Odaily Planet Daily reports that Rick de los Reyes, head of commodities and fund manager at Puxin Group, stated that gold may remain range-bound in the near term, with the potential to reach new highs afterward. Reyes analyzed in an email that the recent surge in gold prices has developed extremely rapidly, exhibiting typical “short squeeze” characteristics, which led to a sharp increase in prices within a very short time frame. He pointed out that, based on historical experience, a spike in actual volatility is often followed by a period of consolidation, after which the upward trend resumes. Although over-extended positions in any asset can pose risks, Reyes added that the underlying drivers supporting gold demand remain solid. (Jin10)