Gold is sitting at $1565.75 while the context for the yellow metal is a market where traders are holding long, but not large positions, according to strategists at TD Securities.
Key quotes
“Gold is a crowded trade. The bull market narrative is widely acknowledged, which translates to an above-average number of traders holding a long position, although the average trader's position size is not excessive, suggesting that greed is not widespread.”
“The risk to gold bugs is a change in narrative that would prompt a decline in the number of traders long. A reversal of recent safe-haven flows driven by fears that the Wuhan coronavirus could contaminate global reflation appears to be an obvious candidate for a narrative-driven reversal.
XAU/USD
-3.9700 (-0.25%)
1564.47 00 / 00
Open 1568.55 High 1568.67 Low 1561.99
KEY LEVELS
R3 1586.48
R2 1580.30
R1 1574.47
PP 1568.29
S1 1562.46
S2 1556.28
S3 1550.45
Key quotes
“Gold is a crowded trade. The bull market narrative is widely acknowledged, which translates to an above-average number of traders holding a long position, although the average trader's position size is not excessive, suggesting that greed is not widespread.”
“The risk to gold bugs is a change in narrative that would prompt a decline in the number of traders long. A reversal of recent safe-haven flows driven by fears that the Wuhan coronavirus could contaminate global reflation appears to be an obvious candidate for a narrative-driven reversal.
XAU/USD
-3.9700 (-0.25%)
1564.47 00 / 00
Open 1568.55 High 1568.67 Low 1561.99
KEY LEVELS
R3 1586.48
R2 1580.30
R1 1574.47
PP 1568.29
S1 1562.46
S2 1556.28
S3 1550.45
