smoke on the water first blood judgement day ahead fo shorts Don’t bet against gold; TD Securities loses 4.4% in tactical short trade
On Friday, analysts at TD Securities announced that they were exiting their recently initiated tactical short position in gold. The bank had been warning investors that downside risks in gold were growing as bullish speculative positioning remained at extreme levels.
TD initiated the trade when December gold futures were trading at $2,533. The bank was expecting prices to fall back to $2,300 an ounce, as they anticipated the Federal Reserve would strike a more cautiously hawkish tone.
“Of course, this was an extremely out-of-consensus position, but while the flows hitting the tapes over the last sessions have been off our radar, it's clear that the Fed's low bar for pursuing notable easing in an economy that is in decent shape is attracting additional capital to the yellow metal,” the analysts said in their latest note.
TD exited the trade as December futures rose to $2,549 an ounce, resulting in a 4.4% loss on its tactical short position.
https://www.kitco.com/news/article/2024-09-23/dont-bet-against-gold-td-securities-loses-44-tactical-short-trade