Gold: CTA short covering supports prices – TD Securities

TD Securities’ Ryan McKay and Bart Melek note that easing interest rates and moderating US Dollar (USD) strength are encouraging CTAs (Commodity Trading Advisors) to cover shorts in Gold and other precious metals. Systematic positioning remains a drag, but strong macro discretionary exposure, ETF inflows and central bank demand are providing support. TD Securities expects these flows to stay robust, particularly in the $4,000-4,100/oz region.