"Speculators increased their net length in gold ahead of the FOMC meeting and Midterm elections, as the still shaky equities and prospects of gridlock prompted money managers to aggressively cover short positions," TD Securities said in a recently published report reviewing the latest CFTC data.
"Nonetheless, the Fed's affirmation that it will be sticking to its preset hiking path prompted the market to revalue lower the strike level on any potential Powell-put — which ultimately helped the greenback strengthen and challenged gold prices."
"With tail-risks out of the way, we would not be surprised to see gold length resume its downward trajectory for now."
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