According to analysts from TD Securities, it seems that there was long liquidation of recently accumulated relatively “weak” positions near $1,500-1475/oz and they see that there are no broad changes in hedging activity or speculative activity, suggesting that current price dynamics may not be sustainable.
Key Quotes:
“Despite little change in the macroeconomic narrative, gold has come under pressure as prices broke through key technical levels, including the uptrend channel formed from the summer lows and more recently as prices broke through $1480/oz support.”
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