Despite some continued volatility, the yellow metal has rebounded some eleven percent from its recent lows to over $1,620/oz. Gold price could move toward $1,800/oz in the not too distant future, strategists at TD Securities report.
Key quotes
“Normalizing liquidity conditions, negative real rates, low cost of carry and concerns surrounding fiat currency debasement, likely means price could move toward $1,800/oz in the not too distant future.”
“A move toward $2,000/oz is also a distinct possibility into 2021, as the global economy normalizes, monetary conditions remain loose while fiscal deficits surge.”
“Any selloff in the near-term should be considered as temporary and will likely serve as an additional catalyst moving the price toward $1,800 before the yellow metal reaches escape velocity toward a $2-handle.”
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