Gold Holds Steady as Trend Funds Bet Big on Global Bonds

The value of spot gold has reached $4,390.14 per ounce, remaining unchanged from yesterday's price.

In contrast, the main COMEX gold futures contract increased by 0.63% to $4,447.70 per ounce.

Trend funds have taken a significant short position in global bonds, with over $400 billion at stake.

Ahead of this week's US Consumer Price Index (CPI) announcement, every 1 basis point change in the 10-year U.S. Treasury yield could result in approximately $300 million profit or loss exposure for commodity trading advisors (CTAs).

UBS notes that this is the highest level since they began compiling this data.