Gold Price is back in the red, falling for the second straight day. A hawkish Federal Reserve (Fed) is set to weigh on the yellow metal, with little demand for gold ahead, economists at TD Securities report.

The world is chasing the same Fed narrative 

“Quantitative tightening is going to sap liquidity at a fast clip, while the Fed hikes into slowing growth – and everyone knows it. This leaves positioning analytics as a critical source of information for price action in the coming months.”

“Trend followers have completed their buying program and still remain long, which argues for additional downside on the horizon as momentum persists to the downside, with the macro narrative sapping investment demand for gold.” 

“Without conviction that the Fed could blink, there are few participants remaining to buy gold, which still leaves a liquidation vacuum as the playbook in gold.”