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Gold prices unlikely to retreat much further

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NEW YORK (Scrap Register): While gold has fallen back from longtime highs last week, TD Securities looks for future losses to be limited.

Analysts blame the price decline on easing geopolitical tensions surrounding North Korea and a U.S. debt-ceiling agreement that keeps funding the government until December 8.

“But it is unlikely the yellow metal continues to retreat much further with U.N. sanctions set to anger the North Koreans and the impact of hurricanes Harvey, Irma and potentially Jose set to weigh on U.S. economic data over the next couple of months,” TDS added.

Depressed data as a result of the hurricanes is likely to keep investors doubtful of a December rate hike by the Federal Reserve. Furthermore, the postponement of the debt-ceiling argument until Dec. 8th could also be seen as adding further doubts to a potential hike that has already been questioned heavily over the past several weeks.

“The decreasing likelihood that Congress passes tax legislation this year reinforces this view. We expect the continued Fed uncertainty, along with the inevitable return of North Korea worries, will keep prices near the $1,350 an ounce mark with potential for temporary geopolitically induced moves toward $1,375 an ounce in the cards,” TDS noted.

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