Gold is poised to move higher later this year, powered by the Federal Reserve’s less aggressive stance on interest rates and lingering global uncertainties, a precious metals expert said Tuesday.
Central banks have been buying gold at levels not seen in 50 years, as part of a broader diversification of reserves away from currencies including the U.S. dollar.
Gold prices have largely been stuck in a range of between $1,217 to $1,330, according to Martin Huxley, Singapore-based global head of precious metals at financial services company INTL FCStone. But he said that could change.
“I think that we expect gold to continue to trade pretty much within that range for the coming months,” Huxley told CNBC on Tuesday. “But over the second half of the year we expect it then to grind higher, and could potentially test 1,400 towards the end of the year,” he added, referring to gold’s price per ounce in relation to the dollar.
Panthera Resources Plc (LON:PAT) was incorporated in the UK and Wales in 2017. The company is focused on its gold exploration and development projects in India and West Africa and the optimisation of other mineral projects.