TD on gold, not holding back on their views!
Gold is:
- trading below pandemic-era levels
Result:
- a small number of family offices and proprietary trading shops are increasingly feeling the pressure to finally capitulate on their massively bloated and complacent length in gold.
More:
- Rates markets are now pricing the potential for higher interest rates to persist for some time, and a steady stream of Fedspeak is likely to hammer this point home.
- In this sense, our analysis suggests gold prices could still have further to fall in the next stage of the hiking cycle.
- The increase in inflation's persistence suggests that a restrictive regime may last longer than historical precedents, which argues for a more pronounced weakness.
