Filograph/E+ via Getty Images
Gold (XAUUSD:CUR) could see volatility in the short-term, but the long-term picture could be positive because of U.S. economics.
Gold (XAUUSD:CUR) prices should spike higher over the long term due to factors such as the big U.S. debt and fiscal deficit, said Ryan McIntyre, managing partner at Sprott, a precious metals and energy transition investing company, with $25.4B in assets under management as of Sept. 30, in a CNBC interview.
Yesterday’s gold price index (XAUUSD:CUR) surged past $2,125, a record high, before coming down today to $2,023.15.
McIntyre said that, long-term, the picture for gold is “very positive.”
“When you’ve got a slowing economy, and people already seeing and suggesting that lower rates will be coming down in the near term, that should be supportive of a gold.”
But in the short-term, the index will experience some volatility and a sovereign risk, he said.
Sprott stated that heightened uncertainty regarding the economy could trigger a change in risk sentiment and benefit gold, which its allocated physical form stands out as a safe haven asset.
“We believe that people should have about 10% of their portfolio in physical gold,” he said.
Credit: Source link