“We are of the view that the US dollar and US Treasury yields have peaked. We also expect that US economic growth will peak this quarter. During the next two years, we expect lower US economic growth and lower 2y and 10y US Treasury yields. We expect the Fed to hike in December 2018 and one more time in 2019, some time during the first half. Going forward, the 2y US Treasury yields will probably rise in tandem with inflation expectations. So real yields will likely not rise. All these factors support our view that the US dollar has peaked and will weaken in 2019 and 2020. Therefore, we expect gold prices to rally in 2019.”
USAGOLD note: One of Europe’s biggest banks, the Netherlands’ ABN-Amro, weighs in on gold for 2019 with a strong endorsement for the future. It sees gold at $1400 by year-end the resulting from a confluence of factors covered briefly at the link above.
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