Gold prices rise after Fed holds rates but high won't last, says CEF CEO

September 22, 2016 3:03 AM

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Gold prices rise after Fed holds rates but high won't last, says CEF CEO

While he said he was optimistic about the long-term prospects for gold prices, the fact the Fed was likely to next raise interest rates in December 2016 would be a near-term negative for the yellow metal.

Higher interest rates will dampen gold prices as the precious metal doesn't offer a yield but incurs an opportunity cost to the investor for holding it. A rise in interest rates will also boost the dollar, which gold is traded in globally, making it more expensive for investors outside the U.S. to b...

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