Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage of important industry events and analyses of market-affecting developments.
Doshi pointed out that gold prices are up around 20% since the February lows. “It hasn't been a weaker dollar, the dollar is higher,” he said. “It hasn't been lower real or nominal rates at the belly of the US Treasury curve, those are at year-to-date highs.” “If I was in your Studios a couple of years ago and I told you that the Fed was going to hike to 5 and a quarter to 5.50%, that real yields at the belly of the US curve were going to go from negative territory to plus-200 basis points, I don't think many people would have thought that gold is going to average $1,800 to $1,900 over those last couple of years, and then break out to all-time nominal highs in 2024,” he added.
“I think from that standpoint, the risk-reward is probably for higher gold because hawkish pricing is probably peaking out. We don't think that hikes are really on the table in this environment, we think the Fed wants to keep 10-year treasury yields below 5% or at 5%, and that financial conditions are tight enough for the monetary policy authorities.”
The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc.