Deutsche Bank noted in its latest report published on October 15 that the deleveraging of quantitative risk parity portfolios has reached the 90th percentile since 2010, leading to gold algorithmic selling being close to "absolute exhaustion." Deutsche Bank expects CTA funds to be forced to cover approximately 20% of their net short positions in gold, which could form a self-reinforcing algorithmic short-covering cycle, laying the foundation for stronger gold prices in Q4. Simulation data shows that algorithmic trading systems are currently biased towards buying gold in almost all price scenarios, but the price of gold needs to rise to approximately $4,370/ounce to trigger the next round of large-scale programmatic buying.