(Kitco News) Gold is making a positive move this week, and the Federal Reserve’s monetary policy meeting closing on Wednesday could open room for more profits, TD Securities said. “We expect the FOMC to remove the second hurdle to the gold bug after the ECB, which allowed room for a weak USD narrative to run. Officials are expected to send a dove wave signal through quantitative easing phrases, dot plot expansion by 2023, and a press conference by the chairman. Over time, the average maturity of government bond purchases can be extended. In this context, we argue that the risk balance leans towards a higher breakthrough,” writes TD Securities commodity strategist. There is support for higher gold prices in the future, strategists add. “Gold is once again in love as the stock market shakes from last week’s positioning pressure. We argued that the recent price action has revealed that gold has a supportive positioning slate with few weak hands left. “If gold traders had’weak hands’, last week’s stock market volatility would have caused a bigger decline.”
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