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“Gold specs continued to add to their extended short position in the aftermath of the FOMC,” TD Securities analysts point out.

Key quotes

“Investors opted to maintain their bearish stranglehold on the yellow metal as Fed Chair Powell’s statements looked to assure the market that the removal of “accommodative” did not signal any policy change.”

“In addition, disappointing economic data in China saw the yuan weaken, while a recent steeping of the US yield curve also helped to further bolster the negative precious metals outlook. So long as the USD and Fed expectations remain unchanged, we expect that interest in precious metals will remain muted.”