Precious Metals: Positive environment – TDS

The surge in gold prices to start this week has been spectacular, quickly trading back to the top of the range near $1700/oz after hitting lows near $1450/oz, strategists at TD Securities apprise.

Key quotes

“The Fed's massive QE program and other facilities, helping quench the markets dash-for-cash, in combination with the Fiscal stimulus package valued at nearly $2T, the market is quickly discounting that the macro regime is inching ever closer towards Modern Monetary Theory.”

“CTAs were quickly whipsawed and are buying the yellow metal once again, which likely helped trigger outsized moves amid lower liquidity.”

“Platinum and palladium have also surged heavily in recent days, as a positive precious metal environment was met with a 21-day mine closure in South Africa amid virus concerns. CTAs have returning to buying palladium along with gold.”