Gold Price Forecast: XAU/USD acceleration to moderate – TDS
|Gold price extended its bullish rally and gained more than 2% on Monday. Short-term, however, the Gold market should lose momentum, in the view of economists at TD Securities.
Financial system risks are ebbing
“The risk that the Fed hikes will be more robust than the market currently expected, technical dynamics, end to short covering suggest that Gold acceleration will moderate and there may be some give back at least some of the gains made on the back of the payrolls report and the systemic risk scare.”
“Convincing signals from authorities that they are ready to provide liquidity to stabilize financial firms, should they require it, should go a long way to reduce systemic risk concerns over time. This should increase risk appetite, reduce the probability of very poor economic outcomes and move expected rates somewhat higher.”
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