Citi warns of volatility in gold, forex as it boosts odds of Trump win to 40%

Singapore

GOLD may be in for a bumpy ride in the final quarter as Republican candidate Donald Trump now has a 40 per cent chance of winning the presidential election, and investors will be preparing for the possibility of higher US interest rates, according to Citigroup Inc.

Volatility in bullion and foreign exchange markets may increase, according to a commodities report from the bank as it raised the odds on a Trump victory over Democrat Hillary Clinton in November from 35 per cent. There would probably be a single US hike by year-end, it said.