(Kitco News) – The gold market continues to struggle as investors focus on the potential for tighter monetary policy and transitory higher inflation pressures.
However, one fund manager says that the rally in the gold market is far from done as there is still plenty of uncertainty to support precious metals prices.
In a report published last week, Joe Foster portfolio manager, of the VanEck Gold Strategy, said that he still sees potential for gold prices to push back to $2,000 an ounce by the end of the year as it could be too little too late for the Fed to stop the growing inflation threat.
Despite the bullish outlook, the gold market struggles to break through critical resistance levels and is testing support just above $1,800 an ounce.
Although markets are focused on the U.S. central bank reducing its bond purchasing program by the end of the year, Foster said that looking at the big picture, there is still plenty of stimulus being pumped into global financial markets.