Gold to shine amid US-China tensions, global efforts to ramp up inflation - TDS

Bart Melek, Head of Commodity Strategy at TD Securities (TDS), said in the latest client note, gold prices will eventually turn out a winner, in the wake of the US-China tensions and global efforts to drive inflation higher.

Key quotes

“I think the potential for a new trade war with China could be a trigger for new gold buying.

Gold prices will continue to be caught in a tug-of-war between deflation and inflation.

The global economy continues to face deflationary threats as the world adjusts to lower growth expectations as the COVID-19 pandemic has decimated the global economy.

Deflation will push real interest rates higher, making gold less attractive.

Governments and central banks have said that they will do whatever it takes to drive economic growth back to normal levels.

This reaction will drive inflation and push real yields back down and gold prices higher.”

Key quotes

“I think the potential for a new trade war with China could be a trigger for new gold buying.

Gold prices will continue to be caught in a tug-of-war between deflation and inflation.

The global economy continues to face deflationary threats as the world adjusts to lower growth expectations as the COVID-19 pandemic has decimated the global economy.

Deflation will push real interest rates higher, making gold less attractive.

Governments and central banks have said that they will do whatever it takes to drive economic growth back to normal levels.

This reaction will drive inflation and push real yields back down and gold prices higher.”

Key quotes

“I think the potential for a new trade war with China could be a trigger for new gold buying.

Gold prices will continue to be caught in a tug-of-war between deflation and inflation.

The global economy continues to face deflationary threats as the world adjusts to lower growth expectations as the COVID-19 pandemic has decimated the global economy.

Deflation will push real interest rates higher, making gold less attractive.

Governments and central banks have said that they will do whatever it takes to drive economic growth back to normal levels.

This reaction will drive inflation and push real yields back down and gold prices higher.”