Gold: Discretionary demand keeps bulls in control - TD Securities

TD Securities strategists Ryan McKay and Bart Melek attribute the strength in gold to strong discretionary spending and Asian investment, even as Commodity Trading Advisors (CTAs) positioning has stalled. They suggest that CTAs may only add to their positions if gold reaches $4,600 per ounce, while weak US jobs data, low energy prices, and the possibility of Fed Chair Jerome Powell's continued non-hike stance could bolster the stagflation narrative, which is favorable for gold.

Gold has maintained its upward trajectory, nearing the $4,700 mark for the first time since early May, even as the US Dollar strengthens slightly and US Treasury yields remain modest across the curve.