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Prepare for Gold Below $1,000 as Fed Pulls the Trigger on Rates

  • Bullion may dip below that level, then recover, BMI forecasts
  • `We’re not thinking that it’s going to collapse,' Davies says
Updated on

Gold may become a three-figure commodity once again after holding above $1,000 an ounce for the past six years.

Bullion may slide below that level in the first half of 2016 after the Federal Reserve raises rates and the dollar gains, according to BMI Research, a unit of Fitch Group. Expectations for gradual tightening will cushion the fall, with prices returning to about $1,000 and above, said John Davies, global head of commodities research. The metal was at $1,076.17 at 8:18 a.m. in London.