Fund managers see gold setting new highs despite rate pressure
Gold fell on Oct. 14, but fund managers cited central-bank demand and economic uncertainty in their longer-term outlook.
Key takeaways
- Troy Asset Management's Charlotte Yonge forecast a new gold high within 12 to 18 months.
- Aon Investments' Paul Carne sees possible record prices within two years.
- Preliminary World Gold Council data put September central-bank gold buying at about 63 tonnes.
Fund managers and mining executives told the Financial Times they expect gold to reach new highs, despite near-term pressure from possible U.S. interest-rate increases. Troy Asset Management's Charlotte Yonge forecast a new peak within 12 to 18 months, while Aon Investments' Paul Carne said records could come within two years.
Gold fell about 2% on Oct. 14, according to the report. It had reached a record in January. As of 09:00 UTC on Oct. 15, gold futures traded at $4,173.70, up 1.6% since the previous close.
The executives pointed to geopolitical tensions, rising government debt and uncertainty in financial markets as factors supporting demand. Yonge said increased borrowing needs and uncertainty over monetary policy could strengthen gold's appeal as a hedge.
Central-bank purchases are another source of demand. Preliminary World Gold Council data showed purchases of about 63 tonnes in September, the highest monthly total since November 2024.
Endeavour Mining CEO Ian Cockerill said gold could be near a strong support level ahead of another rise, while noting he could not say it was a firm floor. Standard Chartered's Suki Cooper said central banks continued to show strong demand for gold.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
