Big funds reduced their positions: Expert explained the condition for the rise

Hedge funds sold across all 25 major commodity contracts tracked by Saxo Bank ahead of the U.S. midterm elections, according to Ole Hansen, the bank's Head of Commodity Strategy. Net long positions in gold fell to a five-month low as part of the broad de-risking. Hansen said a post-election rebound in gold would only be sustained if support comes from fundamental factors. The across-the-board liquidation signals caution among speculative investors heading into a major political event. Investors will watch whether fundamentals—such as demand and macro drivers—recover enough to justify renewed positioning after the vote.