FXStreet reports that strategists at TD Securities believe that gold (XAU/USD) is set to extend its advance on a close above the $1,860 level.
“The breakout has driven the China Smart Money group of funds to add a significant amount of new length in SHFE gold. Considering that Shanghai gold net length remains near multi-year lows, a change in sentiment, potentially driven by the technical breakout, could attract a significant amount of buying interest from this cohort.”
“Gold prices need only close north of $1,860/oz to catalyze further CTA long acquisitions, which should cement a more supportive trend.”
“After all, our ChartVision framework, which stress-tests 75 technical indicators to identify the critical threshold for a change in trend, suggests that with gold prices north of $1,845/oz, an uptrend in gold should form by March 2022.”