Gold has failed to build on Wednesday's gains as US yields have reversed back higher. Economists at TD Securities expect the yellow metal to remain under pressure as the US dollar is also in demand.

Capitulation risk is growing 

“After a brief period of relief, recovery in the USD and increasing yields have started to weigh on precious metals once again.”

“The risk of capitulation remains prevalent for the yellow metal moving into October with key labour market and inflation data on tap before the next Fed meeting.”

“With prices trading below pandemic-era levels, a small number of family offices and proprietary trading shops are increasingly feeling the pressure to finally capitulate on their massively bloated and complacent length in gold.”

“The combination of surging real rates and USD, continued outflows from money managers and ETF holdings are all adding pressure on family offices and prop shops to finally capitulate on their length.”