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A pullback is in play in precious metal, as analysts at TD Securities anticipated.  The weakness in the near-term is going to see profits taken by CTAs.

Key quotes

“Dry-powder analysis suggests that per-trader positioning has never been this extended, which now poses a significant risk for a rush-to-the-exits.”

“The risk of continued weakness in the near-term is extremely elevated. Meanwhile, we suspect that silver will underperform as it holds a lower beta to Fed expectations and is the less preferred option for safe-haven flows.”

“We expect CTAs to add to downside flow in silver and platinum as the trend followers take profits in response to the weakening uptrend.”