Gold Price struggles for clear directions above the $1,700 threshold. In the view of strategists at TD Securities, a liquidation event is simmering in the yellow metal.

Strong retail sales print and empire manufacturing data could spark fears of additional hikes

“With gold bugs falling like dominoes, prices are now challenging pre-pandemic levels raising risks that the largest speculative cohort in gold will start to feel the pain under a hawkish Fed regime.”

“The massive prop-trader longs appear to be complacent, but the average trader is still holding nearly twice their expected position size. Now, pressure is building towards a capitulation as prices start to challenge their pandemic-era entry levels. In a liquidation vacuum, these massive positions are most vulnerable, which suggests the yellow metal remains prone to further downside still.”

“Additional fedspeak could be expected ahead of tonight's blackout period, but the strong retail sales print combined with the strong empire manufacturing data could spark fears of additional hikes.”