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Fidelity Forecasts $4,000 Gold as Dovish Fed, Weaker Dollar Loom
29 Jul
Summary
- Fidelity International predicts gold could reach $4,000 an ounce by the end of 2024
- Dovish Federal Reserve policy and a weakening US dollar are expected to drive gold prices higher
- Fidelity has recently increased gold holdings in some of its multi-asset portfolios
According to Fidelity International, gold prices could reach as high as $4,000 an ounce by the end of next year. The firm's multi-asset fund manager, Ian Samson, cites a more dovish Federal Reserve and a weakening US dollar as key drivers behind the bullish outlook for the precious metal.
Fidelity has already increased gold holdings in some of its cross-asset portfolios over the past year, with allocations potentially doubling from an initial 5% position. Samson explains that the rationale was a "clearer path to a more dovish Federal Reserve," which would likely lower interest rates to cushion the US economy.
The article notes that gold is up more than 25% so far this year, buoyed by factors like uncertainty around US trade policies, geopolitical conflicts, and central bank accumulation. While the metal has traded within a tight range in recent months, Fidelity remains optimistic about its long-term prospects, with Samson predicting the potential for a 15% tax hike on US imports, which could slow the economy and further support gold's appeal as a haven asset.
