Gold: CTA selling intensifies ahead of Fed decision - TD Securities

TD Securities analysts Ryan McKay and Bart Melek report that Gold remains under pressure as CTAs accelerate selling ahead of the upcoming Fed meeting, with prices nearing levels that could push funds net short. However, they argue the impact should be modest given Dollar-debasement themes, strong central bank purchases and renewed ETF inflows, framing near-term weakness as a longer-term accumulation opportunity.

Systematic selling versus structural support

"Precious metals remain weak with the Fed on deck."

"The latest round of CTA selling in gold is accelerating, with prices flirting with triggers that would see funds target a net-short heading into tomorrow's Fed meeting."

"With that said, we expect the systematic selling impact to be relatively modest with the renewed dollar-debasement theme, elevated central bank buying, and renewed ETF accumulation offering a strong support base for discretionary flows."

"Near-term weakness in the yellow metal should be increasingly viewed as a potential buying opportunity to accumulate for longer-term upside."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)