The FOMC has a history of being reactive to inflationary pressure and we expect that this trend is unlikely to change. The Fed should raise rates in September, but won’t
Precious metals equities have re-rated to historical peaks or above. Morgan Stanley lifts its bull cases to reflect this, but still the risk reward is unappealing bar continued commodity price rises. MS downgrades Randgold to UW, with Centamin most and Fresnillo least preferred.