Gold rose above $1,800 for the first time in four months. However, economists at TD Securities expect the buying appetite for the yellow metal to fade.
Positioning risks are no longer tilted to the upside
“After yesterday’s sharp rally sent Gold prices above several key triggers catalyzing trend follower short covering, CTA trend followers are set to start adding shorts again this session.”
“At this juncture, positioning risks are no longer tilted to the upside in gold, and we see the first signs of buying exhaustion in gold as a rally north of $1,830 only points to marginal CTA buying from current positioning levels.”