XAU/USD unlikely to move sustainably toward $2,100 until US economic data weakens – TDS

Gold has started the new week on the back foot. Economists at TD Securities analyze the yellow metal’s outlook.

There may be quite a bit of volatility in the Gold market

Once the market is convinced that the Fed’s next move is a cut and they are more certain about the timing, it is likely that investors will continue to build out long exposure. However, with data still strong there may be quite a bit of volatility in the Gold market. 

We don’t expect a sustained move toward our $2,100 target until US economic data weakens materially.