Make Kitco Your Homepage

Long-term inflation expectations continue to support gold prices — TD Securities

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) Rising coronavirus cases in the U.S. and the reintroduction of some shutdown measures are not impacting inflation expectations just yet, which is good for gold in the long-term, according to TD Securities. “In precious metals, renewed 'reopening rollback' fears in California have done little to impact long-term inflation expectations as confidence grows in the economic recovery, leaving real rates trading near their lows. This powerful driver of gold prices continues to provide positive tailwinds for the yellow metal for the time being,” TD Securities commodity strategists point out. Looking ahead, tactical trading could work well in the short-term, they add. Silver is also likely to continue to outperform gold for now. “In the medium-term, should commodity demand resume its upward trajectory, the white metal could continue to outperform — benefiting from both the positive precious metals environment and its industrial characteristics.”

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.