FXStreet reports that economists at TD Securities judge that the Fed’s continued emphasis on its full employment mandate should see the yellow metal recover most of its recent losses.

“Despite the fact that the FOMC dot plot shifted hike expectations forward to late-2023 (median showing a 50bp of tightening), with many traders expecting a much earlier tightening, and that Chair Powell has started the process of preparing markets for QE tapering, we believe that the yellow metal is still in a position which makes a return to a $1,900/oz range possible into 2022.”

“Real rates likely remain at the lows, along the longer end of the curve too, which is gold accretive. The yellow metal has a good chance to again move into $1,900/oz territory for part of 2022-23. In addition to all the macro and monetary policy ducks having to be lined up in a row, there will need to be an improvement to physical demand in China and India for our optimistic view to play out.”