Gold has witnessed a cycle of sharp price declines. Economists at TD Securities analyze the yellow metal’s outlook.
Since it is quite likely that Mr. Powell will continue to deliver the same old play by the numbers narrative in September and at Jackson Hole in late August, there are significant risks that rates move even higher, which would increase already high carry and opportunity costs.
As such, Gold is at risk of dropping to technical support below $1,900 if data remains steadfast, which implies continued length reduction.