Canadian investment bank TD Securities echoes Wells Fargo’s positivity on gold and also reminded investors of the importance of acting quickly to buy gold now, noting that the stage is now set for the precious metal to begin price gains after September’s month of consolidation.
In a bulletin issued earlier this week, the bank’s analysts said, “The stage is set for a precious metals rebound. Market participants should recall that the consolidation in the complex was catalyzed by a positioning squeeze that has since morphed into election-related jitters, pummelling gold bugs in response to months-long delay in passing a multi-trillion-dollar stimulus bill.
“If the election is the hurdle that has kept inflation expectations from rising further, as suggested by the prevailing market narrative, then gold bugs may not need to look too far into the future to expect the multi-trillion dollar fiscal deal. The secular bull market in precious metals is still intact, as capital will continue to seek shelter from a prolonged period of negative real rates … We think the balance of risks has tilted firmly to the upside once again.”
Act quickly, buy now.