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Gold stays supported as investors await key US inflation data
TD Securities says inflation readings will drive Fed pricing, but dollar weakness, central bank buying, and ETF demand may cushion any near term hawkish surprise.
Gold and broader precious metals have held firm even as near term expectations for Federal Reserve rate hikes have risen, according to TD Securities analysts Ryan McKay and Bart Melek, as cited by FXStreet.
They highlighted that upcoming US inflation data is a key catalyst for Fed pricing and for discretionary portfolio flows, suggesting that any hawkish shock would likely delay rather than derail the next move higher.
The analysts pointed to longer run supports tied to themes such as dollar debasement, along with central bank purchases and ETF demand, as reasons gold could remain resilient.
FXStreet also noted that gold rebounded on Wednesday after a three day losing streak, snapping back as the US dollar faced additional selling pressure and investors weighed geopolitical uncertainty, while traders looked ahead to more US inflation figures later in the week.
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