UNITED STATES November 07 2016 1:45 PM
NEW YORK (Scrap Register): Gold prices are likely to keep rising as long as interest rates remain low, according to the brokerage SP Angel. 

Financial markets have been factoring in expectations for a December rate hike by the Federal Open Market Committee, but even so, U.S. rates would remain at historically low levels. 

SP Angel suggested the FOMC might not hike if Republican Donald Trump wins the U.S. presidency in next week’s election, but would add a quarter point if Democrat Hillary Clinton wins. 

“Longer term we cannot see the Fed raising rates much, if at all, next year as the impact on sustaining the cost of U.S. government borrowings is likely to be a significant factor in Fed thinking,” analysts at SP Angel noted.

“The longer rates stay low, the higher gold prices are likely to grow. If you add the uncertainty a Trump presidency might bring to the table, then we can see gold prices heading towards $1,400 an ounce relatively quickly, while a Clinton win may be slightly depressing for the metal,” they added.