TDS: Gold Ripe For Short-Covering Rally If U.S. Economic Data Weak
Gold could stage a short-covering rally if economic data should be weak, says TD Securities. The metal has been under pressure since mid-August. “The choppy nature of the current (economic) recovery is likely to prompt the market to adjust its interest rate expectations, which would reduce the discount rates for zero-yielding assets such as gold and may force short covering,” TDS says. Friday’s U.S. nonfarm payrolls report “could be the catalyst that convinces traders that higher interest rates sooner are not a riskless bet.” Many investors have dumped metal from their portfolios on the expectations the U.S.
No comments yet.
Leave a comment
You must be logged in to post a comment.