Gold simmering a break above $1750 – TDS
The yellow metal has been unable to surpass the $1750 level, currently trades at $1725, but strategists at TD Securities expect gold prices to break higher after this stabilization as this is a pattern already seen in the gold chart.
Key quotes
“Gold once again failed to break through $1750/oz resistance, but taking a step back, it is still clear that prices remain range-bound near multi-year highs.”
“We believe the market is coiling ahead of a breakout to higher prices – a historical pattern that we have observed several times over the course of the last few years.”
“Ultimately, the key question for gold bugs is whether we are on the cusp of a regime shift in inflation, as the combination of world-war era fiscal and central bank stimulus, along with a change in the central bank template (symmetric inflation target) and unwinding globalization could lead to a world where inflation is once again very relevant. In this context, a continued growth normalization should be welcomed by gold bugs as a reversal in safe-haven flows should be offset by investment demand, with real rates significantly suppressed.”
Author
FXStreet Team
FXStreet
