Positioning squeeze has taken place as the bulls feeling the heat bail out in droves, triggering stop losses to the bottom of the abyss. Gold is currently trading down 5.8% at $1,916, falling from a high of $2,029.98 on the day. The bullish gold narrative has used up much of the dry-powder for the bulls, and while in aggregate positioning is not yet extreme, position sizes are bloated, analysts at TD Securities explained. Gold looks to complete a 61.8% Fib retracement Further, gold’s reaction function to real rates has shifted from a linear to a convex relationship, which could add to the pain as real rates ebb higher, the analysts at TDS explained further. Real rates have been on the incline since last week’s Nonfarm Payrolls report which beat expectations. This, in the main, has also given the US dollar a boost, making a double bottom in the 4HR charts. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US: CPI likely rose strongly and not just due to a bounce in gasoline – TDS FX Street 2 years Positioning squeeze has taken place as the bulls feeling the heat bail out in droves, triggering stop losses to the bottom of the abyss. Gold is currently trading down 5.8% at $1,916, falling from a high of $2,029.98 on the day. The bullish gold narrative has used up much of the dry-powder for the bulls, and while in aggregate positioning is not yet extreme, position sizes are bloated, analysts at TD Securities explained. Gold looks to complete a 61.8% Fib retracement Further, gold's reaction function to real rates has shifted from a linear to a convex relationship, which could add… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
