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
Gold sell
Period: 31.10.2026 Expectation: 18000 pips
Go short on gold upon breaking $4,300
Today at 04:16 AM 12
Period: 30.09.2026 Expectation: 600 pips
Selling EURUSD on fears of stronger US inflation
Today at 04:16 AM 11
Period: 11.10.2026 Expectation: 3200 pips
Going short on AUDUSD ahead of US Fed meeting
11 September 2026 52
Period: 30.09.2026 Expectation: 2000 pips
SPX sell-off targets $7,400
11 September 2026 40
Period: 25.09.2026 Expectation: 2800 pips
Buying Tesla stock with $390 in view
11 September 2026 62
Period: 10.10.2026 Expectation: 2500 pips
Buy AUDCAD upon breaking 1.00000
10 September 2026 47
Go to forecasts