Gold prices are near all-time highs. Strategists at TD Securities analyze the yellow metal’s outlook.

Balance of risks in Gold prices tilted to the upside

While US data remains strong, the Fed can use the trends in core PCE to justify the start of rate cuts. The Fed wants to engineer a soft landing, which allows it to emphasize disinflation over growth.

A cutting cycle should eventually attract discretionary trader capital, which should support Gold towards new all-time highs.

CTA trend followers still hold substantial dry-powder to deploy, physical market buying activity has remained strong, and China is buying gold at a fast clip – all of which tilt the balance of risks in Gold prices to the upside, hot data notwithstanding