Gold Price Forecast: XAU/USD fails to print new lows ahead of NFP report – TDS

Gold price edges higher on Thursday. Bets for rate hikes by the Federal Reserve have failed to cap the yellow metal, strategists at TD Securities report.

More substantial CTA buying activity is unlikely below the $1,920 mark

“Gold prices are failing to print new lows ahead of this week's jobs report, and instead, have traded incredibly resiliently given rates markets pricing for the terminal rate rising sharply to 5.65% with 43 bps of hikes priced for March (72% chance of a 50 bps hike). This continues to underscore that substantial physical inflows into Gold markets have more than offset investor outflows in recent months.”

“In response to the resilient price action, CTA trend followers could already be set to marginally add to their Gold length this session, but more substantial CTA buying activity is unlikely below the $1,920 mark. Still, substantial selling flows are equally unlikely until prices break below the $1,710 mark, suggesting that CTA flows may take a backseat in the yellow metal for the time being.”