Gold sellers are lurking, according to economists at TD Securities. Therefore, the pain trade remains to the downside.

Shanghai traders are likely to appear on the offer

“The bar is razor thin for algorithmic trend followers to add to selling pressures in US 10Y Treasuries once more. This should further sap appetite to buy the yellow metal, while the bar for additional short covering rises further.” 

“Shanghai traders are likely to appear on the offer, particularly amid a weakening CNY.” 

“Gold prices are vulnerable, considering we see signs that gold sellers are lurking.”