Gold: Rate cuts feeding the yellow metal – TDS
|Gold will be affected mainly by the suppression of real rates all over the world in the opinion of strategists at TD Securities.
Key quotes
“The precious metals complex continues to see a reversal in safe-haven flows, which is weighing on prices, but we reiterate that the structural bid in the yellow metal is ultimately independent of equity market flows and the continued strength in the USD.”
“Gold's bull market is associated with the loss-aversion theme, which continues to drive the structural growth in investment demand in precious metals as capital seeks protection from negative real rates. With central bankers suppressing real rates across the globe, we expect this theme to remain prevalent.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.