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Fund Manager Eric Strand Predicts Gold Bull Market to Reach Record Highs

Published by Tavex Analysts in category Tavex News, Market News on 29.03.2023
Gold price (XAU-GBP)
1,835.69 GBP/oz
  
- GBP3.10
Silver price (XAG-GBP)
24.71 GBP/oz
  
+ GBP0.53

Gold is facing strong resistance at $2,000 per ounce, but Eric Strand, the manager of the AuAg ESG Gold Mining UCITS ETC (ESGO), believes that the precious metal will soon break through to reach new record highs. Despite the wait, Strand sees only tailwinds for the gold market due to the global banking crisis and the threat of a recession, which he believes will prevent the Federal Reserve from raising interest rates any higher.

Gold prices are currently holding steady at support levels above $1,950 per ounce, with April gold futures trading at $1,968.50 per ounce, up 0.75% on the day. Market analysts are predicting a bullish uptrend for gold prices as they anticipate the Federal Reserve to cut interest rates as early as June, with the potential for four rate cuts by the end of the year.

Strand believes that the narrowing gap in monetary policy between the Federal Reserve and the European Central Bank will also benefit gold, as ECB rate hikes should support the euro and weaken the U.S. dollar. He sees this as an excellent opportunity for the mining sector, which has lagged behind the precious metal since the beginning of the year.

According to Eric Strand, the manager of the AuAg ESG Gold Mining UCITS ETC (ESGO), gold is poised to break through the resistance at $2,000 per ounce and reach new record highs. Strand cites the global banking crisis and the threat of a recession as factors that will prevent the Federal Reserve from raising interest rates any higher, which he believes will benefit the gold market. He also sees an opportunity for the mining sector, which has lagged behind the precious metal so far this year.

Gold price (XAU-GBP)
1,835.69 GBP/oz
  
- GBP3.10
Silver price (XAG-GBP)
24.71 GBP/oz
  
+ GBP0.53

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