Gold’s rally has begun to show signs of exhaustion. The economists at TD Securities are reporting that an epic bull trap could be unfolding in the XAU/USD.
Macroeconomic headwinds are unlikely to abate in the coming months
“We see signs of exhausting buying in gold, but notable price consolidation will be needed before trend following CTAs trigger further exits.”
“At this juncture, positioning risks are no longer skewed to the upside as a recovery above $1,830 only points to marginal buying by CTAs from current positioning levels. This suggests that trading in pain in precious metals may finally be running out of steam, setting the stage for an epic bull trap in precious metals as recent strong price action attracts discretionary interest in the complex while macro headwinds are unlikely to relent in the coming months.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
