Gold Rally Capped by Fed Risks and Dollar Strength: TD Securities

TD Securities commodity strategists, led by Bart Melek, have flagged that gold investors have sharply reduced long positions. The move comes as higher oil prices stemming from the US-Iran conflict threaten to reverse recent disinflation trends.

The strategists point to Federal Reserve risks and persistent dollar strength as key factors capping gold’s upside. The combination of elevated energy costs and a firm greenback is likely to keep bullion under pressure in the near term.