Forex
Gold Faces Programmatic Selling Threat Below $4,367
Gold prices have been fluctuating recently, and TD Securities has issued a warning about potential programmatic selling if gold breaks below two key technical levels.
The current price of spot gold is around $4,327 per ounce, but analysts Ryan McKay and Bart Melek believe that once it falls below $4,367, Commodity Trading Advisors (CTAs) could trigger moderate selling.
A further breach of $4,300 would make it easier for systematic funds to trigger large-scale selling, potentially amplifying the downside pressure on gold prices.
The analysts note that despite renewed strength in energy prices and a higher probability of near-term Federal Reserve rate hikes, gold has continued to outperform other precious metals such as silver and platinum.