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GOLD $1,291.7

US to cut by 25bp good for gold

  1. markets have already factored in a rate cut of 25bp by the fed (US), so a rate cut of this size will not have any significant effect on markets

    So how is this bullish for gold..... well US interest rates going lower in the short term make the forward selling of gold less attractive, so a reduction in US rates should provide a disincentive for gold companies to forward sell production, therefore reducing the short term supply of gold.

    As far as aussie gold stocks go I like Newcrest.

    As always do your own research and make your own decisions - these are just my views

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