Gold remains under some selling pressure for the second successive day on Thursday. The pain trade could extend further, in the view of strategists at TD Securities.

Low bar for additional short covering

“We still see risks that the pain trade in precious metals could extend further, as positioning risks remain skewed to the upside in Gold.” 

“A series of key trend reversal thresholds associated with substantial short covering flow remain just north of the $1,800 mark, which points to a low bar for additional short covering.”

“Return on patience is elevated for those looking to fade the recent rally.”