Gold’s recovery appears to have no big catalysts while the US dollar continues to rule the roost, TD Securities head of global strategy Bart Melek said in an interview with Kitco News.
Key quotes
“We were below $1,680, now we are in recovery mode “” above $1,728. I don’t see a big catalyst to the upside at this stage. For the time being, we are range-bound.”
“Right now, the US dollar is the only game in town because the US economy is the only game in town. Europe is locking up while the US could be fully vaccinated by May. This is why the US markets will do pretty well. Plus, we are getting a significant commitment to spend more on infrastructure. Earnings and everything else will be good.”
“I’m a little bit more optimistic about Q2, but gold is not going to find its traction until the latter part of the year.”
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