Financial services company Fidelity International projects the gold price to hit $4,000 per ounce late next year as the Federal Reserve lowers interest rates, and economy growth slows down, weakening the US dollar.
“The rationale for that was that we saw a clearer path to a more dovish Federal Reserve,” Bloomberg quotes the company’s multi-asset fund manager Ian Samson as saying.
According to him, Fidelity is bullish on gold due to uncertainty around US tariffs, conflicts in the Middle East and Ukraine, and central-bank accumulation of bullion.
“…Ultimately we’re heading to a 15%-or-so tax on about 11% of the US economy - which is imports,” Samson explained, adding that this factor may lead to an economic slowdown, which, in turn, may lead to dollar softening in weaker growth environments.
Elsewhere, the world’s central banks are likely to go on buying gold, he added, while growing fiscal deficits - particularly in the US - would continue to reinforce the precious metal’s appeal as a safe-haven asset.
Theodor Lisovoy, Managing Editor, Rough&Polished
