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Gold price keeps making new all-time highs: TD Securities

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(Kitco News) The precious metals sector keeps making new gains with little stopping gold and silver from climbing, according to TD Securities. “The precious metals train keeps on chugging. Continued weakness in the USD and real rates remain the main factors supporting the surge higher,” TD’s strategists write. “Silver continues to outperform and remains our precious metal of choice as both precious metal flows, and industrial demand improvements combine for strong performance.” The move up is also aided by the perception that the Fed might be looking into abandoning of preemptive rate moves, they add. TD Securities, however, cautions investors in the short-term, projecting a pullback in prices. “While we agree real rate suppression and massive stimulus on a global scale will see gold move higher, we caution the yellow metal is still currently running hot relative to these observable drivers. With positioning at the higher end of the range, and likely becoming more stretched in recent days, along with frenzied retail speculation and momentum, the yellow metal could be prone to a swift shakeout on any marginal recovery in the USD or rates,” the strategists say.

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