Make Kitco Your Homepage

'The very high bar set for rate hikes' points to higher gold price: Commerzbank

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) Gold prices will be going up, especially in light of the high bar set by the Federal Reserve to hike rates, according to Commerzbank. “The very high bar that has been set for rate hikes points clearly towards a higher gold price,” writes Commerzbank commodity analyst Carsten Fritsch. On Wednesday, the Fed reiterated that its ultra-expansionary monetary policy will be here for years to come. “The Fed intends to hike interest rates only if inflation rises not only to but moderately above 2%, and does so not only briefly, but for some time. What is more, the target for maximum employment must also be met at the same time,” notes Fritsch.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.