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Breakeven entry point for gold bulls is $1,440 - TD Securities

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Gold prices are showing resilience in the light of extended long positions, but the near-term direction could still be down, according to TD Securities. “Gold prices have remained resilient in the face of extremely extended long positioning, despite being at a risky juncture for the bulls with the Fed now on pause,” write strategists at TD Securities. “CTAs may have liquidated some length, but the bar is high for machines to add further selling pressure, and aggregate open interest still sits at all time highs — suggesting that the pain trade is still to the downside in the near-term.” The breakeven entry point for gold bulls remains at $1,440, the strategists add. “Our estimated breakeven entry point for the bulls stands in the $1440/oz range, which suggests that a break below that range would be required for prices to be dragged lower by a decline in open interest.”

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

 

Gold’s constructive range is still at $1,450-$1,500 — RBC Wealth Management 

Thursday November 14, 2019 09:46

Gold is showing that it can still rally in the face of higher U.S. dollar and the Federal Reserve staying pat on rates, says RBC Wealth Management managing director George Gero. “Yesterday’s rally proved that gold cannot be counted out due to strong dollar index and cannot be counted out by FED’s present stance of holding pat with no changes that some view as hawkish,” writes Gero. “We are seeing higher open interest, higher closes, higher volume … continue constructive with range still $1,450-$1,500 for gold. Market participants continue to eye U.S. politics, Brexit, Middle East and the U.S.-China trade talks, Gero adds. 

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