| A contrarian consensus has emerged whereby higher US rates, when in effect, are expected to trigger higher gold prices, while usually higher interest rates in a low inflationary environment would negatively impact the price of gold, as a non-yielding asset class, Thomson Reuters GFMS market analysts have reported.
The idea that prices will rise is based on the assumption that the market has already anticipated the rate increase, more than pricing it in, explains the GFMS metals research and forecasts team in the first of its new ‘Quarterly update and outlook’ reports, which supplements the yearly ‘Gold Survey'..............................................Full Article: Source
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