TD Securities global head of commodity strategy Bart Melek said markets have
largely priced out a Fed rate hike in tonight's decision and oil fell on
Wednesday. If energy prices remain subdued, the Fed may be less aggressive with
tightening; easing in long-end yields is also reassuring. Any Fed action should
be seen as a tool to convince markets it will prevent inflation from running
unchecked. Combined with the US Treasury's consideration of measures to lower
long-end yields, these factors are supportive for gold over the long term.
