Despite the Federal Reserve implementing its most aggressive tightening cycle in over 40 years, the gold market remains resilient, maintaining robust support above £1,520 ($1,950).
One market analyst believes that the precious metal has a good chance of reaching record highs, as the U.S. central bank is getting closer to a terminal rate. Steve Land, the lead portfolio manager of Franklin Templeton’s, Franklin Gold and Precious Metals Fund, mentioned in an interview with Kitco News that renewed investor demand is the crucial factor that could drive gold prices above £1,550 per ounce ($2,000) and beyond record levels.
Land also mentioned that as economic growth slows down, recession fears in financial markets will persist. This situation is expected to further boost investment demand for gold. He said, “I’m very happy with the gold price. It’s performed exceptionally well, reflecting a lot of the economic uncertainty in the world”.
