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Fears of inflation unlikely to boost gold price

This year’s rally in the gold price has come on the back of a coronavirus-led surge in safe-haven buying and a plunge in interest rate expectations. More recently, however, we suspect that the uptick in the gold price has come from investors positioning themselves against the risk of inflation, though we don’t expect it to pick up much in the short term. As such, we think the gold price will fall back by year-end.

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