A market strategist has recently expressed optimism regarding the future of gold prices. The overnight surge of gold to a record high of over £1,649/oz ($2,080) is believed to be just the start of a prolonged rally that could potentially continue through 2023. The strategist attributes the current upward trend of gold to two primary factors: market uncertainty and investor anxiety. As global markets continue to experience volatility and instability, many investors are seeking safer investment options.
George Milling-Stanley, the chief gold strategist at State Street Global Advisors, mentioned in an interview that he foresees safe-haven demand to be the dominant force, outweighing any further rate hikes by the Federal Reserve.
“I think gold is in a solid position to go far higher” he said.
The remarks were made as gold prices continue to exhibit a strong positive trend, with June gold futures trading at £1,631/oz ($2,057.30) in the last session, representing a 1% increase for the day.
Milling-Stanley noted that while the Federal Reserve’s tightening cycle may not have come to an end, he believes that this stance will not greatly affect gold. He further commented that the Federal Reserve is still in the latter stages of its tightening cycle, and therefore, the U.S. dollar is likely to face ongoing challenges.
According to Milling-Stanley, the primary driver for gold is expected to be the safe-haven demand, given the current market conditions. He emphasised that gold continues to remain an attractive option for investors, especially as the banking crisis persists and shows no signs of abating anytime soon.
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