Precious metals: Fed will drive prices higher – TDS

Precious metals are recovering from a meaningful pullback that has taken place. Analysts at TD Securities expects the Fed to cut in March and April, a theme that will continue to drive precious metals higher into 2020.

Key quotes

“It is worth keeping an eye on the ETF data this week as a reversal in holdings in the aftermath of Friday's sell-off could continue to add pressure on gold prices in the near-term, as money managers could continue to rush for the exits.” 

“Silver and platinum will likely feel more pain in the complex, as they hold a smaller beta to changes in Fed expectations and safe-haven flows.”

“We anticipate continued pressure from a large scale selling program in silver and platinum, with prices respectively below $17.22/oz and $861.70/ oz — platinum, in particular, could see substantial downside flow as algos will be set to target a noteworthy net short position as prices slash through several key triggers.”