According to analysts at TD Securities, recent weakness in US employment data gave a further boost to gold as interest rate markets are now pricing nearly 80% probability of a Fed cut in July.
“With pricing getting extremely dovish, along with the recent round of CTA buying wrapping up and a risk on appetite after Mexico avoided tariffs, this mornings pullback in yellow metal seems warranted in the near term, although any downside should be fairly contained. While the recently accumulated CTA length in gold remains safe above $1300/oz.”
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