Gold Price Forecast: Decline in XAU/USD is unlikely to morph into a rout – TDS

Gold flows have remained eerily quiet of late. Stagflation narrative captures market’s share of mind, but not for gold bugs, as strategists at TD Securities note.

See – Gold Price Forecast: XAU/USD to see damaging weakness on a break below $1775 – Credit Suisse

Central bank gold purchases have slowed 

“Lackluster changes in global gold ETF holdings contrast with the rise in stagflation-themed news stories, suggesting that high inflation and slowing growth is increasingly capturing the market's share of mind, but the theme has yet to translate into inflows for gold.” 

“Central banks have slowed their purchases, paring back a critical bid for the market following their recent buying binge.”

“Dry-powder analysis in Comex gold highlights that while the gold bug may not be widespread, position sizes are bloated relative to historical data.” 

“With Shanghai gold length nearing historical lows, a cleaner discretionary and CTA positioning slate suggests the decline in gold prices is unlikely to morph into a rout.”