Gold Price Forecast: XAU/USD to meltdown below the $1,675 mark – TDS
|With every downtick, the risk of capitulation in gold is rising. Economists at TD Securities expect the yellow metal to slump below the $1,675 level.
China's appetite for gold has remained resilient
“The top players in Shanghai markets continue to add to their gold length, despite a depreciating CNY. These flows, alongside central bank demand, have likely kept gold from melting in a liquidity vacuum amid a hawkish Fed narrative, Nonetheless, the risk of capitulation from bloated prop-shop positioning is growing with every tick lower in prices as we approach this cohort's pandemic-era entry levels.”
“The downtrend in gold is gaining steam, as the breadth of technical signals short continues to firm.”
“The risk of a breakout in the broad dollar index could coincide with a meltdown below the $1,675 range in gold.”
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