Gold will be affected mainly by the suppression of real rates all over the world in the opinion of strategists at TD Securities.
“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.”
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