Gold has surged to $1,930, its highest level since February 2. The yellow metal could stage a significant race higher, strategists at TD Securities report.
Do not fade the rally in Gold
“The risk of a dash-for-cash is mitigated by substantial physical demand in Gold and by neutral discretionary trader positioning.”
“The yellow metal still appears to offer the most competitive risk/reward on our screen as strong physical demand driven by the East should keep losses subdued if central banks remain on the war path to combat inflation despite bank liquidity concerns.”
“Risks that the tightening cycle is coming to an end should also realign discretionary flows with strong physical flows, which could translate into substantial upside.”
