Spot gold (GCY00) is surging to new record highs above $2,460 in today’s session, fueled sharply higher by rising expectations for imminent Fed rate cuts. While gold futures (GCQ24) took a breather in June, the precious metal has ramped higher as expectations for a Fed rate cut in September from Chair Jerome Powell and colleagues have surged above 93%, according to the CME FedWatch Tool.
Sprott Asset Management’s Senior Portfolio Manager John Hathaway believes the yellow metal hitting $3,000 per ounce within a year isn't far-fetched, and highlighted the potential for a 15% to 20% gold price rise to have an outsized impact on mining stocks. In a tech-dominated market, Hathaway sees the potential for a pivot toward precious metals stocks as investors seek diversification.
