The spot price of gold is currently down by 9% from its all-time high, but this is likely to rebound back to record levels, CNBC reported.
- TD Securities Head of Global Strategy Richard Kelly said gold is “relatively cheap” and definitely has the potential to catch up moving forward.
- Data from Refinitiv shows the spot gold price is at $1,877 per troy ounce, versus the $2,063 all-time high in August.
- Kelly said a number of investors were scared off by the reversal after the build-up last year.
- Kelly said the U.S. dollar could possibly dip to bring gold prices higher, as currencies were looking relatively “rich.”
- Even if gold reaches the $1,900 level, Kelly said the price could still climb given the current policy rates and inflation dynamics.
- “That’s certainly a catch-up trade that can have more legs,” he said.