Gold price recovers from four-week lows at $1,860. TD Securities economists report that, despite this, buyers do not seem very convinced.
Gold prices remain overbought
“Shanghai gold dealer sell-offs continue to suggest that the huge Chinese buying activity of the past few months was likely exacerbated by the Lunar New Year celebrations amid China’s reopening, but is now on the way to normalizing. Still thus, with positioning now slightly below average, the pace of sell-offs for this cohort could slow, leaving investors as marginal buyers or sellers, which in the recent context heightens market focus on upcoming data. “
“We don’t expect a substantial CTA bearish flow until prices break out of the $1,840 range, but the margin of safety against a marginal buying program is very narrow above $1,900. In turn, although the Prices remain overbought, we don’t see a bearish trend imminent without data to support a more hawkish path ahead.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
