Gold set to rally in coming months, experts say. Key level to watch
Gold’sManagers behind the two largest ETFs in the market that are backed by precious metal say the hot streak is only beginning.
Bullion’s best week since May was over on Friday thanks to investors who bought Bullion in order to hedge against rising inflation. The record for Bullion is now more than 30 years. spike in consumer prices. The stock has increased 7.5% from September’s bottom and is within 2% of reaching breakeven on an annual basis.
CNBC’s George Milling Stanley, State Street’s George Milling Scottanley said that a recovery in demand for gold jewelry might propel the price up even more. “ETF Edge”This week.
Milling-Stanley, who is State Street’s chief gold strategist in SPDR ETFs oversees the popularity SPDR Gold Trust (GLD).
He stated that consumer demand for gold jewelry, which is mainly going to emerging markets, had done extremely well during the first quarter of the year.
According to iShares, jewelry accounts for half of the global gold demand. Central bank reserves are at 25%; individuals, at 15%, and industrial uses, at 10%.
Milling Stewart said that the six-months ahead are likely to be the most popular in India due to wedding and festival season. He said that the precious metal could be further pushed by the Chinese New Year celebrations and the gift-giving season in West.
Milling-Stanley stated that “we should be running into what’s typically the strongest period of gold demand in terms jewelry in the year for five to six month and that’s part reason why gold’s where it is today. It’s comfortably above the $1,800 level which it finds very difficult to overcome during the summer and early fall.” But here we are in wintertime. Gold is doing extremely, very well.”
GraniteShares CEO Will Rhind, founder of GraniteShares, saw more runway ahead.
His company is behind GraniteShares Gold TrustAccording to ETF Database, (BAR) is the fifth largest gold ETF by assets under administration.
Rhind stated that “I am very optimistic on the outlook gold for next year” and that this is due to what’s happening with inflation. He also highlighted $1,800.
“We had the tapering announcementPeople expected that gold would fall last week. But, they were surprised to see it rally.
Rhind suggested that when central banks are able to resist rate increases and combine a supply crunch and an inflationary situation, the combination could make it more attractive.
“We are facing real inflationary pressures, and the longer they last, the worse it is for us all, so we will continue to look at inflation hedges.” he stated.
“There’s not a lot of places to hide, and gold has always been a place that people go to in times stress. This data gives me reason to believe that gold will be there next year. If there is an official acknowledgement of inflation being a problem.