Gold Range Remains Intact Despite Delayed Next Leg Up
Gold's higher trading range remains intact, but its next leg up is likely delayed, according to TD Securities' latest commodity analysis. The precious metal has been consolidating within a well-defined range due to persistent central bank buying and geopolitical uncertainty, yet lacks the fresh catalyst needed to push prices decisively higher.
The firm's view reflects a market waiting for clearer macroeconomic signals, particularly around U.S. interest rate policy and inflation trends. Several factors are preventing a breakout in gold prices, including the resilience of the U.S. economy and sticky inflation that have led traders to scale back expectations for aggressive Federal Reserve rate cuts.
Higher-for-longer interest rates increase the opportunity cost of holding non-yielding bullion, capping upside momentum. The U.S. dollar has also remained relatively firm, which typically pressures gold prices.