Gold prices’ uptrend might extend to $2,000 – TD Securities

XAU/USD rallied nearly 3% over the last three days to reach long-term highs at $1,780 before pulling back on Wednesday. The FX & Commodities Strategy Team at TD Securities expects the gold rally to extend to levels beyond $1,800 and eventually $2,000.

Key quotes

“Gold futures made a third attempt to break into $1,800/oz territory despite continued risk appetite, as investors react to resurgent inflation expectations, which are helping push real interest deeper into negative territory across the curve.”

“Given that the US and global economy will be operating at below potential, and large scale business closures and the reversal of some aspects of globalization persist for years post-COVID, it is likely that uber accommodative monetary and fiscal policy will remain along with elevated inflation for a prolonged period.”

“These factors can carry gold north of $1,800/oz in the near-term and eventually above $2,000/oz.”