Gold: CTA whipsaws but support holds – TD Securities
TD Securities’ commodity strategists report that CTAs (Commodity Trading Advisors) have reversed recent Gold buying, yet emphasize that discretionary investors continue to support the metal.
TD Securities' commodity strategists report a reversal in recent gold buying by commodity trading advisors (CTAs), but stress that discretionary investors continue to support the precious metal. They highlight gold's resilience following a hawkish FOMC hike and a generally favorable environment for precious metals. The analysts expect any near-term weakness to remain limited, providing renewed buying opportunities for gold.
Despite a recent CTA buying in gold being quickly reversed, the yellow metal remains extremely strong after the FOMC delivered a hawkish hike. The broader precious metals market remains extremely favorable, supported by easing energy prices and a shift in the energy landscape. The analysts anticipate any near-term weakness in the precious metals market would be contained to moderate CTA selling, presenting a buying opportunity for gold.
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