Precious metals to fall further as the restrictive rates regime is set to last for longer – TDS
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
A stronger dollar and rates continue to weigh on the precious metal complex. Strategists at TD Securities believe that there is more room on the downside.
“The persistence of inflation continues to support an aggressive effort by the Fed, and we now expect the FOMC to raise the target rate by 75 bps at its meeting next week, deliver another 75 bps hike in November, and hike a further 50 bps in December. In this context, while prices are certainly weak, precious metals’ price action could still have further to fall as the restrictive rates regime is set to last for longer.”
“Gold and silver prices have tended to display a systematic underperformance when markets expect the real level of the Fed funds rate to rise above the neutral rate, as estimated by Laubach-Williams.”
[/s2If]
Join Our Telegram Group
