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| Gold Prices |
Bullish Gold Forecast Gains Momentum Amid Fed Pivot and Weaker Dollar
Gold prices could climb to $4,000 per ounce by year-end as macroeconomic forces align, according to Fidelity. The Canadian investment firm emphasized a dovish Federal Reserve and a weakening U.S. dollar as dual catalysts for this bullish gold outlook. As interest rate cuts loom, institutional investors are reallocating portfolios, anticipating stronger performance from precious metals.
Dovish Fed Signals and Trade Policy Tensions Drive Gold Allocation
Fund manager Ian Samson of Fidelity stated that some portfolios have doubled their gold allocations. He cited increased confidence in a more accommodative Fed stance as a key reason. "Diversification makes sense, especially in traditionally volatile months like August," Samson told Bloomberg. Recent market weakness has triggered rebalancing into gold, viewed as a resilient hedge against policy uncertainty and economic slowdown.
Global Uncertainty Sustains Demand Despite Temporary Price Pullback
Although gold briefly retreated from its April peak of $3,500, it remains one of 2025’s top-performing assets with a 27% YTD gain. The rally has been fueled by President Trump’s aggressive trade strategies, leading to geopolitical and economic uncertainty. However, marginal progress in U.S. trade talks has slightly cooled haven demand. Still, concerns persist: Samson warned of an impending 15% tax on 11% of U.S. imports, which may stall economic growth.
Spotlight Turns to Fed Meeting as Dollar Weakness Deepens
As of Tuesday midday, spot gold recovered to $3,319.51 per ounce. All attention now shifts to the upcoming Federal Reserve meeting. While no immediate rate cut is expected, internal divisions are growing. Fed Governor Christopher Waller advocates for immediate easing, citing labor market concerns. Meanwhile, Jerome Powell’s looming exit opens speculation about a more dovish successor, further supporting gold’s ascent.
ScrapInsight Commentary
The $4,000/oz gold forecast highlights investor anxiety over global economic deceleration and monetary policy shifts. Scrap metal traders and recyclers should expect stronger bullion-linked pricing signals. In the long term, central bank easing may bolster non-ferrous demand through revived manufacturing, underscoring the metal’s enduring role in portfolio hedging and industrial resilience.
