Is the gold price pullback over? TD Securities is not convinced
(Kitco News) When trying to figure out if the price pullback in gold is over or not, investors should look at sentiment, positioning, and speculative activity, according to TD Securities. “In assessing whether the pullback has run its course, it is worth recalling that 100% of the momentum signals tracked by our ChartVision trend model have been long gold — a milestone that has historically been followed by more prolonged periods of consolidation,” TD Securities strategists write. Investors who buy too early on dips could be in danger of “macro headwinds, with real rates in the aftermath of the strong inflation print,” the strategists add. Overall, TD Securities sees room for gold to move even lower. “Gold prices are also trading heavily against other pro-risk assets, particularly following the upside surprise. Considering the uber-bullish sentiment in gold markets, along with bloated positioning and the recent surge in speculative activity among retail accounts, we suspect that the pullback may still have room to run,” the strategists say.