While gold could continue to suffer in the near-term, any significant drop in prices could be seen as a buying opportunity as calls for the U.S. to slip into a Recession increases.
Adding to the choir of recession talk is the U.K.-based research firm that said in a recent report that the U.S. economy could see a contraction in growth within the next few years due to higher interest rates. Michael Pearce, U.S. economist for the firm said that he expects the U.S. growth to falter by the start of 2019.
…“If a recession hit before the Fed had a chance to rebuild its policy arsenal, there’s a significant risk that policy would end up stuck at the effective lower bound again,” he said. “That raises the spectre of a long period of (even) weaker growth and inflation, along with an increased risk of asset price bubbles.”