Gold is suffering. XAU/USD fell as much as 0.9% on Thursday to just $1,860 following three previous sessions of declines. Strategists at TD Securities analyze the yellow metal’s outlook.
Given positioning, technical and energy price pressures, it would not be surprising to see Gold drop into the low $1,800s if inflation moves higher and economic data remains firm. The upcoming core PCE deflator may be a catalyst for downside.
However, we expect Gold to recover and surge to the $2,100s in the first half of next year, as the Fed pivots to a more dovish policy and physical buying remains strong.