While gold has rallied 4 percent so far this year after last year's sharp drop, weak fundamentals will soon push the metal down again, say Bob Doll, chief equity strategist at Nuveen Asset Management, and Jeffrey Currie, head of commodities research for Goldman Sachs.
Currie has a target of $1,050 an ounce for year-end, and Doll says gold will likely drop below $1,000, though not necessarily this year
February gold futures settled at a one-month high of $1,251.10 on the Comex Monday, boosted by falling U.S. stocks and the weak U.S. December jobs report. Gold plunged 28 percent last year, its biggest loss since 1981.
Editor’s Note: 38 Trades That Could Turn $1,000 Into $49,000
As for the fundamentals, "real interest rates are going up, the U.S. economy is improving, we're in an environment where return to normalcy is the course of the day,"
Doll tells Yahoo. "None of this is supportive of gold."
The economy grew 4.1 percent annualized in the third quarter.
Gold's rally from 2008 to 2012 stemmed largely from expectations that easing by the world's central banks would cause inflation. But it didn't happen, Doll notes. U.S. consumer prices rose 1.2 percent in the 12 months through November.
Also, "people were concerned the [financial] system was going to fall apart. . . . Oh for two," he argues.
"The mystery to me isn't that gold fell down, it's how did it stay at $1,500 to $1,800 for three years when none of these things was happening."
Given that the metal was able to climb for 12 years in a row, it has more room to fall now, Doll predicts. "There's still a lot of bullishness inside gold, despite the decline."
As for Currie, "our view really is driven by the expectation of the U.S. economy reaching escape velocity," he tells
CNBC. "When you think about a short on gold, . . . it's essentially just a bet on a substantial recovery in the U.S. economy."
Currie believes gold can still act as a hedge against inflation. But he doesn't see inflation rising much during the next few years.
Eventually, when the economy grows faster, it will generate higher inflation, and investors may renew their love affair with the precious metal, Currie maintains. But not for now.
"I get it all the time — 'Why are you bearish on gold when you expect the U.S. economy to recover?'" he states. "You have to think about it in different phases of the business cycle."
Another expert who agrees with Doll and Currie is Frank McGhee, head precious metals dealer at commodities brokerage Alliance Financial. "At some point, gold's rally is going to fade" because of economic improvement, he tells
Reuters.
Editor’s Note: 38 Trades That Could Turn $1,000 Into $49,000
Related Stories:
© 2026 Newsmax Finance. All rights reserved.