Rate cuts by the Fed and other central banks give gold the opportunity to run to $5,000 next year
The fundamental drivers of this gold bull market remain — and the addition of interest-rate cuts by the Federal Reserve and other central banks that still have inflation pressures give gold the “opportunity to run to $5,000 an ounce and much higher into next year,” said Peter Spina, president and founder of gold news and information provider GoldSeek.com.
Prices for the metal have been moving up from oversold conditions after a strong selloff over the past week or so, Spina noted. Still, he said he would be cautious over the coming month as the market is “still settling, with strong volatility, from the huge run-up in prices” that brought gold to record highs as recently as Oct. 20.
Gold for December delivery was trading at $4,008.60 an ounce in electronic trading after the Fed delivered a quarter-point rate cut Wednesday. Prices had settled Tuesday at $4,000.70 on Comex, up 0.4% for the session.
