20 March 2025 | Silver | Gold

TD Securities sees weaker dollar as key driver of gold demand this year

TD Securities sees weaker dollar as key driver of gold demand this year

Last year, central banks were the major gold buyers. But now the main driver has switched to dollar depreciation and risk-off sentiment, Daniel Ghali of TD Securities believes.

This year started with the US currency's relentless firming, and financial regulators of countries, wishing to diversify away from the greenback, used this moment to purchase the yellow metal. However, since then, the dollar has weakened, making gold an attractive asset for investors. Its price tends to exhibit an inverse relationship with the US currency and the Fed's interest-rate, the expert explains.

Ghali also denies the relationship between the slump in Bitcoin and the increase in demand for the precious metal. In his opinion, the current outflows from Bitcoin ETFs are only due to a drop in investor interest in risk assets.

In addition, the expert notes favorable market conditions for silver price growth. Due to the structural deficit, silver's price dynamics will soon accelerate, catching up with gold’s performance, Gali believes.

Elena Berseneva MarketCheese
Period: 27.05.2026 Expectation: 700 pips
Buying EURUSD in anticipation of Fed and ECB policy moves
Today at 11:34 AM 14
Period: 15.05.2026 Expectation: 1000 pips
SPX sell-off comes into play on technical pullback
Today at 10:49 AM 13
Period: 31.05.2026 Expectation: 800 pips
Investing in EURUSD with 1.1780 target
Today at 10:49 AM 9
Period: 04.05.2026 Expectation: 2100 pips
SPX may run into profit-taking near record highs with earnings on deck
Today at 10:10 AM 12
Gold buy
Period: 11.05.2026 Expectation: 120 pips
Buying gold with $4,850 in view
Today at 09:32 AM 31
Period: 04.05.2026 Expectation: 3560 pips
Silver stages recovery after sell-off on Middle East turmoil
Today at 06:47 AM 25
Go to forecasts