Gold prices may struggle as US interest rates move up – BAML

Analysts at Bank of America Merrill Lynch notes that the precious metals are struggling and gold is in the doldrums as the economic policy outline of US President-elect Trump has pushed nominal rates higher, hurting gold.

Key Quotes

“Inflation and inflation expectations have remain subdued, reflected in rising real rates, a key gold price driver. As such, we see a risk that gold will slip below $1,150/oz next year, implying limited upside near term. Having said that, we keep a more constructive view further out on a confluence of factors.”