Gold has fallen briefly back below $1,800 again on Monday. Economists at TD Securities highlight that XAU/USD is set to succumb to bearish sentiment across the precious metals market.
Potential of additional pain for gold bugs
“Speculative length and ETF positions continue to be sold off in gold with precious metals sentiment becoming increasingly bearish.”
“Even with recent liquidations accounted for, positioning analytics still argue for the potential of additional pain for gold bugs.”
“With the Fed telegraphing their every move, Fedspeak this week will be increasingly important, particularly as positioning is continuously squeezed with bearish sentiment building. In turn, we continue to expect substantial selling flow to weigh on the yellow metal at a time when liquidity is scarce.”