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Continuous streams of stimulus and measures taken by policymakers to fight the economic downturn caused by pandemic will lead to a significant rise in debt in the future, Goldman said. This in turn will lead to policymakers allowing inflation to rise, boosting precious metal prices, the bank said.
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"The resulting expanded balance sheets and vast money creation spurs debasement fears which, in turn, create a greater likelihood that at some time in the future, after economic activity has normalized, there will be incentives for central banks and governments to allow inflation to drift higher to reduce the accumulated debt burden," analysts wrote.
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