Gold bars
Fidelity International expects gold prices to reach $4,000 per ounce by the end of 2026, driven by Federal Reserve rate cuts, a weaker US dollar, and ongoing central bank purchases.
Ian Samson, a multi-asset portfolio manager at Fidelity International, stated that the firm remains bullish on gold. After hitting an all-time high of $3,500 per ounce in April, gold prices have recently been consolidating. Some of the firm’s cross-asset portfolios have increased their gold allocations, as reported by Bloomberg.
“The reason for this forecast is that we believe the Fed will become more dovish,” Samson said. He noted that some investment portfolios have doubled their gold allocations over the past year—from 5% to 10%. August is also typically a weak month for equities, making diversification a sensible strategy.
Federal Reserve officials are scheduled to begin their monetary policy meeting later today and announce their decision tomorrow, with expectations that interest rates will remain unchanged. This move could escalate the dispute between Fed Chairman Jerome Powell and Trump to new levels.
Samson indicated that Powell, whose term ends next May, will likely be replaced by someone more receptive to lower borrowing costs.
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