Investors have gone away from Gold amid Federal Reserve's willingness to tighten its policy at an aggressive pace. Strategists at TD Securities believe that the bright metal could plummet on additional signals to control inflation.

Probability that gold will again attempt a run at $2,000 over the short-run has dropped sharply

“The growing expectation that the US Federal Reserve will lift rates by at least 50bps in May and likely another 50bps in June, in response to sky-high inflation and an above potential economy, prompted money managers to aggressively cut gold length. Specs aggressively grew short exposure amid concerns that sharply higher rates will drive price lower, while they also reduced long bets as the probability that gold will again attempt a run at $2,000/oz over the short run has dropped sharply.” 

“Any additional signals from Mr. Powell and friends that they are willing to materially slow the economy to control inflation will send prices sharply lower.”