George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors, stated that with the Federal Reserve cutting interest rates and the dollar weakening, gold prices are expected to rise to $2,700 per ounce by the end of this year. The Federal Reserve cut interest rates by 50 basis points this week and suggested further reductions, which could continue to support gold prices. However, Milling-Stanley believes that aiming for $3,000 per ounce by the end of the year is overly optimistic.
He pointed out that the potential for gold prices to rise in the coming months mainly comes from the weakening dollar, while Federal Reserve policies also provide some support for gold prices. Although gold prices are expected to continue rising, Milling-Stanley maintains a relatively neutral stance on the short-term outlook, believing that current gold prices are within a fair value range.
Furthermore, while the market reacted positively to the Federal Reserve's decision to cut interest rates by 50 basis points, comments from Federal Reserve Chairman Powell indicate that rates will gradually decrease, which further reduces overly aggressive market expectations.
