Could a new bull market in Gold kick off at $2,000? Strategists at TD Securities discuss the yellow metal outlook.

High bar for a hawkish market reaction to the FOMC meeting

“This Fed day, market participants are aware that we have reached 'near terminal' levels of interest rates, which places a high bar for a hawkish market reaction to the meeting.”

“While surprisingly resilient data continues to be out of sync with the Fed's inflation mandate, stress in the banking sector notably raises concerns about the path of future data. After all, commodity market internals have started to deteriorate at a fast clip, pointing to slumping demand consistent with a looming recession particularly as China's economic engine begins to sputter.”

“The risk of a deeper consolidation has notably declined, with the positioning set-up now favoring continued strength in Gold prices.”