Somewhat counterintuitively, the price of gold edged higher following the Federal Reserve’s decision to hike US interest rates for the second time this year. But we don’t think this is the start of a rally. In contrast, we are more positive on the prospects for prices in 2019 and 2020 when a cyclical slowdown in the US economy will force the Fed to end this tightening cycle sooner than it anticipates and to start cutting rates in 2020.
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