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Gold is looking to solidify north of $1600/oz as the Fed’s massive QE program has historically been associated with a suppression of real rates, per TD Securities.

Key quotes

“It is still too early to say if we have entered the recovery phase just yet, with the risk of another containment induced deflationary shock still elevated, but recent price action has done well to firm upside momentum signals.”

“We continue to see a set-up for a multi-year bull market being cemented, as the market is flooded with monetary and fiscal stimulus, while Fed 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.” 

“Fading upside in silver could be beneficial as prolonged weakness in industrial demand should keep silver’s recovery under wraps for now.”