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'There are no signs of capitulation' in gold price, silver price just yet: TD Securities

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(Kitco News) After a major pullback in gold and silver prices, buyers are coming in to buy the dip, which is a sign that the precious metals’ run-up might not be done yet, according to TD Securities. “Certainly, the pullback in gold and silver was swift and deep in nature. However, signs of capitulation following the retail-driven speculative fervor are scarce,” TD Securities strategists write. “Data used as a proxy for retail flows suggests that few accounts liquidated their GLD ownership while even fewer liquidated SLV. Considering the early-day bounce in gold & silver prices this morning, despite still-rising real rates, this suggests that the market has seen some dip buyers after the aggressive pullback during the overnight trading session, but also that there are no signs of capitulation just yet.” There is no evidence showing a wave of people exiting their gold and silver positions yet, which is significant. “We look to our China SmartMoney group of funds for insights on the overnight session, given that these funds have held a significant position in gold & silver over the past few months. The data suggest gold positioning has remained fairly unchanged over the past month, implying little impetus for a fearful exit overnight in the Asia trading session. Conversely, positioning in silver had aggressively grown over the past month, which means silver likely felt some heat on the latter. Close, but no cigar for the bears just yet.”

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