Gold: Expected to perform smartly – TDS
|Strategists at TD Securities expect the yellow metal to trade firmly in the next weeks. XAU/USD is trading at 1606.74.
Key quotes
“A stronger dollar into quarter-end is pressuring gold but in the grander scheme, the scramble for dollars appears to have eased as the Fed's measures helped to quench the market's thirst for dollars.”
“The improvement in USD liquidity helped to remove some left tail risk, but we note that the recovery in prices has been made possible by the consolidation in inflation expectations.”
“In the immediate term, gold prices appear to have run ahead of real rates, but looking forward, as the dust settles on covid's impact we expect gold to perform smartly in the next phase of this narrative.”
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