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'Gold traders would benefit from looking past the noise' - TD Securities

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(Kitco News) Gold traders are advised to look past the noise, says TD Securities, which sees the stimulus package being passed in the not-too-distant future. "Gold traders would benefit from looking past the noise. With election day only a few short weeks away, gold bugs need not look too far to expect a large scale fiscal deal in the making," TD Securities strategists write. A 'Blue Wave' at the polls is starting to get priced in, which is being reflected "by the bear steepening in the Treasury curve, weaker USD and higher equities." A Democratic sweep come November 3rd will results in more spending, benefitting gold. "We expect the yellow metal to perform, as global reflation helps fuel weakness in the broad USD, while conversely, a more sustained rise in rates would likely push the Fed to increase the weighted average maturity of their Treasury purchases, which would help to suppress real yields once again. In this context, the balance of risks remains tilted to the upside in precious metals — the gold bug is well and alive," the strategists said.

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