Gold steadies as tech selloff eases, flows stay firm
ITF Team1 min read
TD Securities sees modest gold recovery driven by liquidity easing rather than a shift in long‑term bullish outlook.
Gold has found a firmer footing after the recent tech‑sector rout softened, according to TD Securities analysts Ryan McKay and Bart Melek. While the rebound is modest, they argue the decline was largely a liquidity‑driven de‑leveraging episode rather than a fundamental change in the metal’s long‑term bullish case.
Liquidity pressures and fund leverage
- Systematic risk‑parity fund leverage has been falling, suggesting de‑leveraging rather than a shift in fundamentals
- ETF outflows remain limited, providing a cushion for gold demand
- Asian follow‑up selling has been modest, keeping pressure on the metal in check
Speculative flows remain strong
- Higher‑frequency gauges show speculative buying strength staying robust
- Market participants view the recent pullback as a liquidity washout, not a capitulation of the bull thesis
What traders are watching
- Gold price levels around $3,870 as a potential support point
- Continued trends in systematic fund leverage and ETF flows
- Developments in US‑Iran diplomacy that could affect safe‑haven demand
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This article is compiled from international market news for information only. It is not investment advice.