Gold Price Forecast: Another leg of short covering in XAUUSD is expected – TDS

FXStreet Insights Team FXStreet

Gold seems poised to end in the red for the first time in three weeks. Strategists at TD Securities expect another leg of short covering in the yellow metal.

Next major buying program rests just north of $1,815

“Another leg of short covering in gold markets is expected, with current prices supportive of another CTA buying program.”

“While the scale of buying flow expected at current prices is marginal, this reflects that positioning risks still remain skewed to the upside for the yellow metal with a low margin of safety before price action catalyzes subsequent buying flow from the largest money manager cohort trading gold. However, the next major buying program rests just north of the $1,815 mark.”

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