Gold: Net-short position below $1485/t range – TDS

FXStreet Team FXStreet

Gold is deeply in the red while central banks are throwing the kitchen sink at this virus, as a dash-for-cash has taken precedence on all else, strategists at TD Securities brief. XAU/USD trades at 1492.66.

Key quotes

“We can observe how broadly traders and money managers have been afflicted by the need to secure through the week-on-week changes in gold's dry-powder analysis.

“While we cautioned that the bullish precious metals narrative was widespread just a month ago, we have seen gold positioning substantially decline with significantly fewer traders long today, as opposed to a decline in position size for those traders that remain long gold.”

“ExFed Chairs Bernanke and Yellen have publicly opined that the Fed should do more — particularly, by expanding their asset purchase program to buy corporate debt, among other measures. Should the Fed announce such measures, this could be a near-term catalyst to drive capital into gold once again.”

“Trend followers could be set to target a net-short position in gold should prices close below the $1485/t range.”

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FXStreet Team

FXStreet

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