Gold Price Forecast: XAUUSD to tumble on a daily close below $1,875 – TDS
|Gold Price has dropped below the $1,875 mark. If the yellow metal sees a daily close below this level, XAUUSD could suffer a substantial drop, strategists at TD Securities report.
CTA trend followers are about to join the liquidation vacuum in gold
“Momentum signals are quickly deteriorating in the yellow metal, lowering the bar for systematic trend follower liquidations to razor-thin levels.”
“We estimate that gold prices need only close below $1,875/oz to catalyze a substantial selling program that could send the yellow metal below the psychologically important 200-DMA range.”
“For now, we still see room for length to subside further, and trend follower liquidations could provide the fuel to kick off a liquidation event with another leg lower.”
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