RBC Analyst: Aggressive Fiscal Policies Will Push Gold Higher
Source: Seeking Alpha (10/9/08)
Nine of the last 13 interest rate-cutting cycles by the U.S. Federal Reserve occurred during recessions, and in two-thirds of them both gold and gold equities clearly outperformed, according to RBC Capital Markets.
While gold prices may demonstrate seasonal weakness in October and November, RBC analysts suggest aggressive fiscal and monetary policies of central banks around the world will likely push gold higher. This is a result of both the elevated financial risk and possibility of higher inflation.