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Gold prices could be heading towards $4,000 per ounce by the end of this year as the Federal Reserve begins to cut rates and the US dollar continues its decline, according to Canadian investment firm Fidelity.
In an interview with Bloomberg on Tuesday, fund manager Ian Samson said his firm is still bullish on the precious metal, with some cross-asset portfolios recently increasing holdings after prices eased from the all-time high of $3,500 set in late April.
“The rationale for that was that we saw a clearer path to a more dovish Federal Reserve,” Samson said, adding that some funds had as much as doubled their 5% allocation over the past year.
Also, August is often slightly weaker for markets, so more diversification “makes sense,” he stressed.
Bullion is one of the best-performing assets this year, rising by more than 27%. Driving the rally was US President Donald Trump’s…
