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Gold continues to hold resiliently, quickly rebounding after prices fell below $1700/oz once again, lending strength to the view od strategists at TD Securities that the left tail has shrunk. 

Key quotes

“Weak economic conditions and disinflationary trends could elevate real rates and keep a cap on interest in the yellow metal in the very near-term, as noted by decreased trading volumes and open interest, despite a positive outlook.”

“When the dust settles, investment demand should continue to flow to the yellow metal. Indeed, unlimited QE, trillions of liquidity injections and continued suppression of real rates, and evidence that points to a macroeconomic context which could imply a situation where many central banks need to maintain interest rates in negative territory, simply to avoid their economies from contracting, all suggest the balance of risks remains to the upside for gold.”