- Although gold is struggling to attract bullish momentum, analysts note that its strength now relies on how much support is in the marketplace, even as speculative interest starts to drop.
The decline in speculative positioning came after weeks of a relatively stable trading environment. According to some analysts, the shift in the gold market was not surprising as investors and hedge funds squared their positioning ahead of the Federal Reserve's monetary policy decision. Commodity analysts at TD Securities said that gold remains supported as the market is starting to doubt the Federal Reserve's optimistic outlook on rate hikes. The analysts said that it's more likely the central bank's next move will be to cut rates.
"Bears/computers tried to smash gold following Wed. FOMC, & extremely"hawkish" commentary & build-in of 2 more rate hikes, but then gold put in an impressive reversal to upside . Now mid-June - start of seasonally best time to buy gold .