After threatening to dip below $US1300 an ounce last week, the gold price has found new support in recent days due to disappointing jobs, manufacturing and services data out of the US.

As a result, the probability of a US interest rate rise dropped from 42% about 10 days ago to 32% yesterday and just 24% today.

But Knox told a Morgans breakfast in Perth this morning that the chances of a rate rise are “several times what the market thinks”.

Morgans is predicting five US interest rate rises before the end of next year.

Gold is flying high at around $1356/oz this afternoon, but Knox says it’s unlikely to last.

“I think we’ve had a short-term run in the gold price that will come down,” he said.

Despite renewed strength in the Australian dollar overnight, Knox is tipping a fall to as low as 70.42c in December – which would be good news for miners.

However, it’s expected to rebound back to 76c next year.