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Analysts at TD Securities, TDS, explained that President Trump’s decision to weigh-in on Fed policy is bullish for gold.

Key Quotes:

“USD optimism, trade and EM angst have prompted investors to shun gold, dragging net positioning near the lower bound as money managers hold excessive shorts and are significantly underweight. We enter a long position at $1228, targeting a move to $1280, as a weaker USD and reversal in positioning should buoy the yellow metal.”

“President Trump doubled down on his criticism of Fed policy in a series of tweets that weighed on the USD and saw the Treasury curve bear-steepen, with 2s10s widening by 5 bps. Canadian rates underperformed across the front-end and belly. Equities also closed the week on a soft note, with the TSX down 0.7% while US indices edged lower by 0.1% on the day.”