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Despite the turmoil in markets, and the worst week for equity markets since the financial crisis, gold and its precious metal peers have joined the selling party, analysts at TD Securities report.

Key quotes

“We believe the sell saw in gold is due to extremely stretched positioning, as both the number of long positions and the number of traders long are at record levels, which elevated the risk of a meaningful pullback off the highs.”

“As observed in previous episodes of market turmoil, gold will often be sold to generate liquidity and cover margins.”