Strategists at TD Securities discuss Gold (XAU/USD) outlook.

Discretionary traders should increasingly deploy their hoard of capital in Gold

“Money managers liquidated some Gold length and added shorts as debt ceiling optimism and resilient data aided the apparent formation of a triple top. Still, our positioning analytics argue that selling exhaustion is imminent.”

“We estimate a high bar for subsequent CTA trend follower liquidations, whereas discretionary traders remain underinvested and Shanghai traders have begun adding to their positions once more.”

“As expectations for a deeper Fed cutting cycle rise, discretionary traders should increasingly deploy their hoard of capital in the yellow metal, supporting new cycle highs before year-end.”