Analyst: Recent gold market shows clear signs of a "short squeeze"

According to Odaily, Rick de los Reyes, Head of Commodities and Fund Manager at T. Rowe Price, stated that gold may remain in a consolidation phase in the near term, and is expected to reach new highs afterward. In an email analysis, Reyes noted that the recent surge in gold prices developed extremely rapidly, exhibiting typical "short squeeze" characteristics, which pushed prices higher within a very short time window. He pointed out that, historically, a spike in realized volatility is often followed by a period of consolidation before the upward trend resumes. Although any asset with overcrowded positions may pose risks, Reyes added that the underlying drivers supporting gold demand remain robust. (Golden Ten Data)