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Gold to Extend Gain as Citi Says Low U.S. Rates Here to Stay

  • Fed leaves rates on hold, signals no change through 2020
  • Bullion set for biggest annual gain since 2010 on haven demand
Gold Bar Casting At Valcambi SA Precious Metals Refinery
Photographer: Stefan Wermuth/Bloomberg
Updated on

Gold’s got more room to rally as there’s little possibility of the Federal Reserve raising interest rates in 2020, according to Citigroup Inc.

“The bar for the Fed to hike next year is extremely high,” New-York based director Aakash Doshi said in a phone interview. “With the risks to global growth still to the downside; with inflation still undershooting, not overshooting; and with trade tensions still likely to persist through 2020, we think the bar to cut or to go back to policy easing is lower.”