The better news flow over the weekend has seen the yellow metal continue its strength above $1600/oz and move safely away from CTA selling triggers for now, per TD Securities.
Key quotes
“We’re not out of the woods just yet should panic reemerge and the highly deflationary impulse from containment effort send real rates higher.”
“Looking forward on the horizon, we think the set-up for a multi-year bull market is being cemented as the market is awash with both monetary and fiscal stimulus while rates are at the zero bound, which suggests investors will continue to seek gold’s warm embrace as real global rates become entrenched in negative territory.”
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