Gold Upside Capped Despite Post-FOMC Bounce: TD Securities
TD Securities strategists note that gold prices bounced after the Fed held rates steady but see limited upside due to FOMC repricing.
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Gold prices rebounded following the Federal Open Market Committee’s decision to leave interest rates unchanged. The Fed signaled a tolerance for inflation running above target, which initially supported the precious metal.
However, TD Securities analysts caution that a repricing of FOMC expectations is capping the upside for commodity trading advisers (CTAs). The strategists highlight that gold’s move higher may be short-lived as market participants adjust their rate outlook. Without a fresh catalyst, the precious metal could struggle to maintain momentum.
Source: FXStreet Forex News