The FOMC’s pledge to maintain stimulus in order to support a strong recovery helped gold prices firm overnight, signaling a prolonged period in which the Fed will continue to suppress real rates, per TD Securities.
Key quotes
“We continue to expect the appeal for precious metals to firm, as capital seeks shelter from negative real rates, but components of market structure remain worrisome.”
“We suspect that we are in the early stages of a multi-year bull market and that, when the dust settles, investment demand will continue to flow to the yellow metal — the balance of risks remains to the upside for gold.”
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