TD Securities has closed a tactical long position in gold after strong outperformance against real rates and evidence that macro funds are chasing the rally, according to commodities strategist Daniel Ghali.

The firm booked a $3.1 million gain, entering at $3,345.50/oz and exiting at $3,635.00/oz. Ghali cited “imminent headline risks” from Fed governor Lisa Cook’s lawsuit, upcoming Fed chair interviews, and U.S. nonfarm payrolls data as reasons for taking profit.

Despite the exit, TD remains strategically bullish on gold, with Ghali noting the U.S. dollar is losing its appeal as a store of value. “As long as this megatheme persists, we will look to re-engage into upsides,” he said.

Spot gold last traded 0.4% lower at $3,547.25/oz.