Make Kitco Your Homepage

TDS: gold makes another attempt at $1,800; third time a charm?

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - TD Securities says gold can top $1,800 an ounce in the current macroeconomic environment. In a research note that asks if the third attempt at this level will be a charm, analysts pointed out that the metal made yet another try early in the day as investors reacted to inflation expectations, which in turn are helping push real interest rates deeper into negative territory. “These factors can carry gold north of $1,800/oz in the near term and eventually above $2,000/oz,” TDS said. “Speculation that yield suppression across the curve, along with [a] flexible and symmetric inflation target, will be a preferred policy option for the Fed, which could see dovish monetary policy remain even if inflation moves above the implied 2% target, are also important factors that can lift prices to new highs.” Monetary policy is likely to remain “uber accommodative,” along with continued fiscal stimulus, as long as the COVID-19 pandemic poses a risk to the economy, TDS said. “As such, there is still plenty of firepower for specs and ETF [exchange-traded-fund] investors to continue growing long exposure.” Comex August gold peaked at $1,796.10 an ounce early Wednesday, before backing off to $1,780 as of 11:28 a.m. EDT.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.