Gold: Disavowal of negative rates to cap the yellow metal – TDS
|Today will see a handful of Fed speaker comments hit the wires, while Fed Chair Powell will also give a speech tomorrow on the current issues facing the US economy, per TD Securities.
Key quotes
“Expectations are that Fed members will push back on the notion of negative rates, which should continue to keep a cap on gold in the near-term.”
“Deflationary concerns continue to constrain precious metals, and present another short-term obstacle, with the latest inflation data disappointing expectations.”
“We expect that when the dust settles, capital will seek to shelter itself from a prolonged period of negative real rates following the pandemic.”
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