Gold: Near-term selling may only delay next leg higher - TD Securities
TD Securities’ Ryan McKay and Bart Melek note that Gold is outperforming other precious metals even as higher energy prices and rising Fed hike expectations weigh on the complex.
Gold's near-term performance may be temporarily hindered, but it could rebound higher in the long term, according to TD Securities analysts Ryan McKay and Bart Melek. Despite higher energy prices and Fed hike expectations, gold has outperformed other precious metals. They note that Commodity Trading Advisors (CTAs) might become sellers if gold breaks certain support levels, but are quick to point out that dollar debasement, central bank demand, and ETF inflows provide strong long-term support.
The analysts caution that strong data and hawkish Federal Reserve expectations could only delay the next leg higher, rather than trigger significant declines. Their analysis highlights the importance of closely watching key inflation data and Fed announcements for potential shifts in gold's trajectory.
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