The price of gold is vulnerable to one last dip if, as we anticipate, the Fed presses ahead with a first hike in US interest rates soon. We have reflected this risk in our end-Q3 forecast of $1,050 per ounce (compared with a current price of $1,142). But we remain positive on the medium-term prospects for the precious metal, as shown in our end-2015 and end-2016 forecasts of $1,200 and $1,400 respectively. This should be a favourable backdrop for silver prices too.
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