Gold ended the week lower amid an uncertain outlook on rates. Economists at TD Securities analyze the yellow metal’s outlook.
Money managers modestly increased their net Gold exposure despite the strong jobs report that could suggest the Federal Reserve may not be in any hurry to start easing monetary policy.
Gold investors remain historically underpositioned, and open interest in the yellow metal remains at levels that have preceded substantial rallies. This highlights a set-up for the yellow metal that is ripe with asymmetry and prone to a material short squeeze as Fed officials contemplate the start of a cutting cycle.
