Gold Could Hit US$4,000 as Fed Cuts Rates, US Dollar Drops

Gold could hit US$4,000 an ounce by the end of 2026 as the Federal Reserve lowers interest rates to cushion the US economy, the US dollar drops and central banks keep expanding holdings, according to Fidelity International.

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MELBOURNE - Gold could hit US$4,000 an ounce by the end of 2026 as the Federal Reserve lowers interest rates to cushion the US economy, the US dollar drops and central banks keep expanding holdings, according to Fidelity International.

Multi-asset fund manager Ian Samson said the firm remained bullish on the precious metal, with some cross-asset portfolios recently increasing holdings as prices eased from an all-time high above US$3,500 an ounce in April.

Spot gold was down 0.2 per cent at US$3,308.39 per ounce, as at 0024 GMT (8.24am Singapore time) on July 29.

"The rationale for that was that we saw a clearer path to a more dovish Federal Reserve," Mr Samson said in an interview, adding that some funds had as much as doubled their 5 per cent allocation over the past year.