Minority expecting 'powerful dovish tilt' were disappointed by the Fed, pushing gold price down: TD Securities
(Kitco News) Even though the Federal Reserve’s message on Wednesday matched up with market expectations, minority “that expected a more powerful dovish tilt were left disappointed,” say commodity strategists at TD Securities. The effects of this was a selloff in equities and gold. “We're seeing a related set-back in equity indices and gold alike, but we reiterate that the yellow-metal's supportive positioning slate should keep prices from experiencing a more severe pullback,” the strategists write. The focus will now shift to fiscal policy and the November election. The long-term outlook for gold remains very supportive. “As the world continues to recover from the pandemic, rising growth will further support inflation expectations and drag real rates lower, which will ultimately support gold and silver prices as investment capital continues to flow towards the complex,” the strategists add.