Strategists at TD Securities do not expect CTA trend followers to exacerbate the rally in Gold much further.

Gold prices are overbought

“Gold prices are overbought, but the demand trends underlying its strength remain unrelenting.”

“We don't expect CTA trend followers to further exacerbate buying activity as long as prices remain below the $1,990 mark. However, a close below the $1,917 range could be consistent with marginal algo liquidations, but more substantial selling flow from trend followers would only be expected if prices break below the $1,865 mark.”