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