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'Ebbing price action' in gold could trigger selloff - TD Securities

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Slowing gold prices action could trigger a selloff, says TD Securities. “For the first time in months, CTAs could be set to liquidate some holdings of the yellow metal in response to ebbing price action. We estimate that unless prices close north of the $1,515/oz range, trend following algos will be set to liquidate some 20% of their length in response to ebbing upside momentum in the midst of the Fed's Pause version 2.0,” say strategists at TD Securities. Rallying risk assets are keeping gold prices under pressure on Tuesday, which could impact gold bugs going forward. “With risk assets posting a noteworthy performance, some gold bugs could be swayed to liquidate their holdings as dry-powder analysis suggests the average trader continues to hold an above average position size,” the strategists write.

By Anna Golubova of Kitco News; agolubova@kitco.com

 

Risk-on sentiment weighs on gold - FXTM

Tuesday November 05, 2019 09:10

Optimism around the U.S.-China ‘phase one’ trade deal is keeping the pressure on gold prices, according to FXTM. “Risk-on sentiment is coursing through Asian markets, amid news reports that the US is considering lifting some of the tariffs currently imposed on $112 billion worth of Chinese goods,” says FXTM market analyst Han Tan. In response to positive trade news, global stock markets continue to rally. “Global equities have enjoyed a double-boost of late, with the ongoing U.S. earnings season as well as optimism surrounding U.S.-China trade talks, although it remains to be seen whether such buying momentum can be sustained,” Tan writes. But, until the U.S.-China trade agreement is actually signed, investors are likely token exposure to riskier assets limited, the market analyst adds. “Investors are still keenly aware of the  pressures that heightened trade tensions have exerted on the global economy, evidenced by the steady stream of contracting manufacturing PMI readings out of the U.S., Europe, and Asia.”

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