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Gold price to rally in 2016 despite US headwinds

We expect further Fed tightening and renewed dollar strength to continue to weigh on the price of gold over the next year or so. Nonetheless, we still see scope for a partial recovery driven by a revival of demand for inflation hedges and safe havens, and by increased buying from emerging economies. This is the thinking behind our (new) central forecast of $1,250 per ounce for end-2016.

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