TD again calling for precious metals rebound The precious metals sector is looking ready for a reversal of this month’s losses, according to TD Securities. “The stage is set for a precious metals rebound. Market participants should recall that the consolidation in the complex was catalyzed by a positioning squeeze that has since morphed into election-related jitters, pummeling gold bugs in response to months-long delay in passing a multi-trillion dollar stimulus bill,” TDS’ commodity strategists write. The U.S. fiscal stimulus will eventually be passed, which should encourage the gold rally further. “If the election is the hurdle that has kept inflation expectations from rising further, as suggested by the prevailing market narrative, then gold bugs may not need to look too far into the future to expect the multi-trillion dollar fiscal deal,” the strategists note. “Further, this is broadly the case irrespective of the election outcome itself, and in this sense, the secular bull market in precious metals is still intact, as capital will continue to seek shelter from a prolonged period of negative real rates … We think the balance of risks has tilted firmly to the upside once again.”