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(Kitco News) – If Gold reached $ 1,323, it could mean an increase of $ 1,360 "earlier than expected," said TD Securities, citing a possible rate cut by the US Federal Reserve as a trigger for the yellow metal.
«Gold together [to] to reach our target of $ 1,360 / ounce earlier than expected, "wrote TD Securities' Commodity Strategists in a note. "As the market is increasingly looking for a reduction in the US rate this year, the US dollar is weak and, considering that stocks are generally more concerned about growth, gold may well fall within a range of higher trading earlier than expected. "
TD Securities predicts that the price of gold will increase to $ 1,360 by three months, and then to $ 1,400 next year.
"We believe that current prices will drive aggressive CTA purchases and increase the duration of their specifications," said TD strategists.
The latest boost to gold prices comes from falling rates across the entire yield curve, noted TD Securities.
"Gold has reached its highest level in about three weeks, as the Fed has adjusted the charts to point out that interest rates will no longer be rising this year, fears of global growth have increased. , the US dollar has fallen and the curve of the $ 1,360 / oz territory, "said the strategists.
In the future, gold investors should pay particular attention to global macroeconomic publications that focus on inflation and growth, the note added.
"A global easing cycle … could lead to competitive devaluations. PCE inflation and the series of growth footprints will be crucial to gather additional information as to whether the price of market discounts is justified, "wrote commodity strategists.
At the time of writing, April's Comex gold futures are trading at $ 1,321.40, down 0.09% on that day, after peaking at four weeks plus early in the session.
"Some safe haven purchases in the midst of unstable global stock markets, combined with a graphical buying interest, are raising the two precious metals markets," said Jim Wyckoff, Kitco Senior Technical Analyst.
Warning: The opinions expressed in this article are those of the author and may not reflect those of the author. Kitco Metals Inc. The author has endeavored to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a solicitation to exchange merchandise, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for losses and / or damage resulting from the use of this publication.
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