Gold might appreciate to $2,000 by late 2021 – TDS

Gold has rallied steadily since mid-March, to reach multi-year highs near $1,800, and, according to the Commodities Strategy Team at TD Securities, the trend might extend with the global economy picking up.


Key quotes


“Spot gold slipped below $1,770/oz immediately after the much stronger-than-expected US June payroll (+4.8 million) data. The very strong positive equity market response to the jobs data likely drove more capital into risk assets at the expense of gold, at least initially (…) However, the yellow metal has now rebounded back to over $1,770/oz and will likely perform well into Q3.”

“The USD is weakening, and real rates should drop as inflation expectations continue to rise. Despite the strong jobs data, wages are lower, labor participation is near the lows and the economy will function at below potential for some time, requiring massive debt-financed fiscal stimulus and low policy rates for the foreseeable future.”

“As such, we are happy with our positive gold view and continue to see the yellow metal trending toward $2,000/oz into late-2021.”


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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

GBP/USD holds above 1.30 as UK Q2 GDP falls 20.4%

GBP/USD is on the back foot, trading closer to 1.30 amid dollar strength. UK Q2 GDP fell by 20.4%, within expectations. The devastating drop was priced in by markets.


Gold completes $200 collapse, trades below $1,900

Gold remains under immense pressure, trading below $1,900 after the biggest rout in seven years. Profit-taking and higher US yields weigh on the precious metal. US inflation figures are eyed.

Gold News

EUR/USD pressured toward 1.17 amid higher US yields

EUR/USD is falling toward 1.17 as US bond yields rise amid the US fiscal impasse and ahead of US inflation figures. Coronavirus headlines and eurozone industrial output are also in play.


Forex Today: Gold sell-off extends, dollar reigns supreme amid fiscal impasse, ahead of data

US bond yields are on the rise, supporting the recovering dollar and contributing to a sell-off in precious metals. The lack of progress in US fiscal talks and the increase in America's coronavirus deaths are among the depressing factors. US CPI is eyed.

Read more

WTI: Big move looks overdue

WTI could soon witness a big move in either direction. That’s because, the spread between Bollinger bands – volatility indicators placed 2 standard deviations above and below the 20-day simple moving average of price - has narrowed ...

Oil News