Gold: Bulls stampede makes its way – TDS
- 11th June 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS, TECHNICAL ANALYSIS
Strategists at TD Securities hear the bulls roaring and expect a stampede making its way following the FOMC meeting where the central bank committed to provide further support to the economy.
“The FOMC meeting provided little discernable new information, apart from a statement suggesting the tapering of Treasury buying had run its course, opening the door for increases in the scale of QE. However, Fed Chair Powell confirmed our expectations — the Fed will maintain its uber-easy policy for the foreseeable future, and may even utilize more tools (such as Yield Curve Control) to support yields amid massive Treasury issuances.”
“With gold on the cusp of a breakout, the ‘second wave’ narrative is interfering with the yellow metal’s rally this morning. After all, gold bugs have learned that the yellow metal does not protect against a deflationary shock like a pandemic. We think there is no new information in the contagion data. Hence, we caution against interpreting this narrative as a sustainable driver of prices. In this context, Systematic trend followers are maintaining a long bias in gold, with a rising hurdle rate for liquidations.”