Bloomberg News: Fidelity Says $4,000 Gold Possible as Fed Cuts, Dollar Drops
Article by Sybilla Gross in Bloomberg News
Gold could hit $4,000 an ounce by the end of next year as the Federal Reserve cuts rates to cushion the US economy, the dollar drops, and central banks keep adding holdings, according to Fidelity International.
Multi-asset fund manager Ian Samson said the firm remained bullish on the precious metal, with some cross-asset portfolios recently increasing holdings as prices eased from an all-time high above $3,500 an ounce in April.
“The rationale for that was that we saw a clearer path to a more dovish Federal Reserve,” Samson said in an interview, 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 said.
Fidelity’s bullish outlook for gold is similar to that from Goldman Sachs Group Inc., which has made the case .....