Somewhat counterintuitively, the price of gold gained 1.6% following the Fed’s decision to hike US interest rates for the third time this year and the fifth time in this tightening cycle. The lack of revisions to the Fed’s inflation and interest rate outlook was the main reason behind the rise. However, given our view that the Fed will tighten monetary policy by more than markets currently anticipate, we think that the gold price will edge lower over the next year.
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