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“Money managers aggressively unwound their gold longs, as the USD surged to its highest since mid-2017 amid market turbulence that directed funds into the safety of America,” TD Securities said in a recently published analysis assessing the latest weekly CFTC report.

Key quotes

“Specs liquidated exposure to the yellow metal, believing that yields could rise further, even as risk appetite waned, which prevented the movement of funds into the precious metals assets.”

“However, following Fed’s Powell’s fine tuning mid-week, it is likely that specs increased gold length “” driven by a reversal of the USD rally and a drop in yields.”