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Current gold price weakness is a buying opportunity before Fed's Powell speech on Thursday: TD Securities

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(Kitco News) Gold is consolidating ahead of the Federal Reserve Chair Jerome Powell’s keynote address at the virtual Jackson Hole Symposium on Thursday, says TD Securities. It is highly likely that Powell “pre-announce[s] the outcome of the Monetary Policy Framework Review, which suggests the formal adoption of average inflation targeting,” TD Securities strategists say. This major shift in monetary policy will be beneficial for gold, which is why current weakness is a good buying opportunity, the strategists add. “The average inflation targeting framework represents a massive shift in the macroeconomic template that should continue to support inflation-hedge assets. As financial repression continues to suppress real rates, we expect that capital will seek shelter in precious metals — which suggests further weakness in the complex represents a buying opportunity.”

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