Gold Price Forecast: XAUUSD in trouble amid substantial selling flow – TDS
Gold dips back to low $1,840s. Economists at TD Securities expect the yellow metal to remain under downside pressure.
A significant amount of complacent length in gold
“A liquidity vacuum is dragging all assets lower, leaving gold to circle the drain in defiance of its safe-haven status, despite the fierce rally in Treasuries.”
“With CTA trend followers joining into the liquidation party, substantial selling flow continues to weigh on the yellow metal at a time when liquidity is scarce. Prices are now struggling to hold onto the bull-market-era defining uptrend in the yellow metal under the pressure of this selling flow.”
“For the time being, the trendline has held despite the strong CPI report, as the turbulence in risk assets sparked a bid in Treasuries, but we continue to see a significant amount of complacent length in gold which could weigh on prices, while the breadth of traders short has just started to rise from near-record lows.”
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
