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Gold prices to take a breather before the next leg up

After an extraordinary rally in gold prices, the recent pullback naturally raises the question of where gold prices may be headed next. In our view, the rest of this year will prove more challenging for gold prices than the first few months. However, the structural factors which have been key drivers of the gold rally will put a floor under prices this year and probably boost gold to new all-time highs next year.

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