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Macro forces are driving gold prices higher - TD Securities

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(Kitco News) Macro forces are the main driver pushing gold prices higher, says TD Securities. “Ultimately, macro forces have prevailed as the primary driver of gold prices — in the context of uber-low rates volatility, normalizing long-term inflation expectations have sent real yields lower, which has continued to drive support for the yellow metal,” TD Securities commodity strategists write. Gold is trading at its highest levels since 2011 and has room to move even higher. “The last few months of fiery performance in risk assets has seen some money managers consistently sell gold amid risk-on behavior in markets, only to see prices grind higher shortly thereafter. This regime has led gold to trade as an inflation-hedge asset — a still nascent theme that has substantial room to grow,” the strategists add. 

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