TDS: 'can you hear the stampede of bulls on the horizon' in gold market?
(Kitco News) - Gold has bounced from Friday’s sell-off that was prompted by a strong U.S. jobs report, and TD Securities looks for further gains. As of 9:10 a.m. EDT, spot metal was up $8 for the day to $1,722.60 an ounce after falling to the low $1,670 area on Friday. “Can you hear the stampede of bulls on the horizon? Gold's consolidation over the past few months has placed a cloud of doubt over the bull market, as money managers repeatedly sold the yellow metal in response to risk-on behavior in markets, with global equity indices posting an incredibly strong performance,” TDS said. However, analysts said, “those selling gold in response to risk-on could be missing the forest through the trees— the Fed will maintain its uber-easy policy for the foreseeable future, and may even utilize more tools (such as yield-curve control) to support yields amid massive Treasury issuances.” Real interest rates, which are adjusted for inflation, are likely to remain “suppressed” for the foreseeable future, TDS said. All of this means that “macro drivers will continue to drive capital to seek shelter in the yellow metal.”