Gold prices may drop following the first Fed rate cut, but will rally over 6-12 months – Analysis

(Kitco News) – Gold tends to underperform during crises in the near term but rallies long-term following rate cuts, according to a historical analysis by strategist Kerry Sun.“Gold prices are reaching new heights, hovering around record levels of US$2,516 per ounce,” Sun wrote in Market Index. “This surge comes amid growing expectations that the Federal Reserve will cut interest rates by 25 or 50 basis points in September.”