TD Research sees a scope for a bid downside pressure on gold over the coming sessions.
"A major capitulation event may be unfolding in gold...We see evidence that the steepest outflows from broad commodity funds since the Covid-19 crisis may be catalyzing a series of cascading liquidations from various speculative groups. This argues for substantial downside for gold in coming sessions as participants are forced to sell in a vacuum," TD notes.
"Indiscriminate selling by broad commodity funds has now sufficiently weighed on price action in gold to catalyze a break below a critical threshold for a change in gold's trading regime," TD adds.
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