Gold to see more investment demand after the election: TD Securities

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(Kitco News) Investment appetite for gold is not waning, but low physical demand out of China and India requires a lot of offsets, according to TD Securities. “While the pace of gold accumulation remains elevated by historical standards, the hypothetical drag created from low physical demand in India and China demands substantial investment buying in order to offset that drag,” TD Securities commodify strategists say. It is expected that investment demand will pick up after the election, the strategists note. “Investment appetite for gold will continue to rise, particularly in the period that follows the U.S. election. In fact, we reiterate that the long gold trade is likely agnostic to the election outcome — and gold bugs need not look too far on the horizon to expect a large-scale fiscal deal that could de-bottleneck the ongoing real rate suppression.” Both of the presidential candidates provide tailwinds for long gold trade. “Both the Trump and Biden agendas estimated to cost between $5.0T and $5.6T over the next decade … That being said, we expect that a Blue Wave would lead to global reflation, which would be the most positive outcome for gold bugs.”

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