Gold: Prices to settle near support at $1,667 – TDS

Strategists at TD Securities expect the yellow metal to settle around a near support before recovering. XAU/USD is trading at 1676.50.

Key quotes

“Money managers aggressively increased their long gold exposure, as volatility moderated, the interest in the yellow metal grew despite the fact that risk appetite was on the increase as well.” 

“Markets also positioned in gold in response to waning USD upward momentum, sending gold prices toward multiyear highs.” 

“Traders also increased shorts, as prices moved toward resistance levels.”

“Given the growing risk appetite and profit taking, we would expect prices to settle near support at around $1,667 with net long exposure moderating, before a move into $1,800/oz territory.”