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Gold holds a higher trading range as rate support offsets slowdown

TD Securities cited long-end Treasury support and a Fed stance seen as tolerant of higher energy costs as key near-term factors.

Reported · Written up by our desk · Precious Metals

Gold is likely to remain comfortable in a higher trading range, according to TD Securities analysts Ryan McKay and Bart Melek, even as momentum softens. They said systematic and ETF inflows have slowed and rates have ticked up, but the broader setup still supports precious metals near term.

The analysts pointed to Treasury support for the long end and what they described as a Fed tolerance for higher energy costs as underpinnings for gold. They added that additional upside may have to wait for clearer conviction that the Fed is on hold.

In the latest market read-through, gold’s intraday move has been tied to stabilization in the US dollar and US Treasury yields after a sharp prior session pullback. As of Thursday, the 10-year yield was reported edging back up to 4.672% after the Treasury’s surprise plan to ramp up long-dated bond purchases.

Latest closeGold $4,432.00 ▲1.6%

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