Gold suffered heavy losses and registered its lowest weekly close in nearly a year. Strategists at TD Securities expect the yellow metal to sustain further losses.

Bear market trading regime in XAUUSD for the time being

“Gold prices have crossed the threshold for a trend reversal, marking confirmation of a bear market trading regime in the yellow metal for the time being.” 

“Prices have since slashed through various support levels on their way towards the $1,600-handle.” 

“Fedspeak has pushed-back against a 100 bps hike from some notable hawks, raising the risk of a near-term short-squeeze prior, which would create the ideal set-up for additional downside.”