TD Securities Warns of More Gold Pain Before Recovery

Gold prices have fallen below the $4,000 per ounce mark, pressured by rising US interest rates and a firmer US dollar. Bart Melek, head of commodity strategy at TD Securities, warns that the precious metal may face additional selling pressure before a recovery materializes.

The analyst points to the macroeconomic headwinds currently weighing on gold. Higher yields increase the opportunity cost of holding non-yielding bullion, while a stronger dollar makes gold more expensive for foreign buyers. The combination has triggered a sharp correction from recent highs.

Melek's outlook suggests that while the medium-term fundamentals for gold remain supportive, near-term conditions could push prices even lower. Investors are advised to brace for volatility until the rate and dollar dynamics shift.