FXStreet notes that gold trades around the $1770 region and, in the opinion of strategists at TD Securities, it could surpass the $1800 level as inflation-hedge assets increase its popularity.
“Gold is on the edge of a breakout. Price action continues to lend strength to our view that gold's role is shifting from a safe-haven asset to an inflation-hedge product.”
“The entire maturity spectrum of inflation breakevens are still priced below policy objectives. In this context, declining real rates should imminently support gold prices into the $1800s.”
“The world-war era fiscal and central bank stimulus, the change in the central bank template that will incorporate 'symmetric inflation targets' and unwinding globalization, suggest that inflation-hedge assets may grow in popularity.”
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