Why Jim Rickards Thinks Gold Prices Will Rally in 2016

KITCO NEWS — As markets digest last week’s move by the Federal Reserve to raise interest rates for the first time in almost a decade, one bestselling author says it was a ‘huge mistake,’ and once the central bank realizes it, gold should benefit. Giving his market outlook for 2016, Jim Rickards told Kitco News he expects gold prices to recover during the second half of the year. 'For the next 6 months, I think it’ll be a bit of a tough road for gold,’ he said. According to Rickards, Fed tightening will put pressure on gold prices, but eventually the central bank will need to turn the corner. 'They had to do it before the end of the year or they would have lost all credibility,’ he said. 'When even the Fed realizes how weak the economy is, they’ll have to ease. I expect Fed ease by end of 2016.’