| BMO Capital Markets remains upbeat on gold for the second half of 2016, commenting that “pullbacks should be viewed as buying opportunities.” The market’s focus will be expectations for Federal Reserve rate hikes, analysts say.
No hike is good for gold, while a hike would hurt the yellow metal. However, a rate increase may hold back gold only for a little while. “Then the markets don’t believe there is actually sufficient economic strength for the next hike. Good for gold,” BMO says. “The underlying driver for our positive view on gold prices remains safe-haven demand in an uncertain global economic environment...............................................Full Article: Source
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