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