Expert Predicts Gold To Be 'Very Positive' For Next 18 Months: 'A Whole New Source Of Madness Coming In'

In a recent interview, Ryan McIntyre, Managing Partner at Sprott Inc., forecasted a bright future for gold prices, expecting them to remain ‘very positive’ for the next 18 months and beyond.

What Happened: McIntyre appeared on CNBC’s “Squawk Box” on Wednesday to discuss the record highs in gold prices. He attributed the surge to several factors, including increased buying by central banks and recent inflows into ETFs backed by gold.

“To us, that’s a whole new source of madness coming in. So we see gold as being very positive over the next 18 months and beyond, frankly,” McIntyre said.

McIntyre also highlighted the fiscal situation of many Western governments as a significant driver behind the spike in gold demand.

“We’re running 7% deficits today, in a nonrecessionary environment, which is pretty unique circumstance,” he explained.

See Also: Nvidia Stock To Surge To $340 In Medium Term? Portfolio Manager Sees Strong Rally Interspersed By 35-80%  Pullbacks

He further noted that gold is seen as a tangible real asset and probably the “only true hedge against elevated sovereign risks that we see in the future.”

Why It Matters: McIntyre’s comments come in the wake of a significant rise in gold prices, which have surged approximately 20% this year, reaching a record high just shy of $2,500 an ounce. The price of gold has been on an "uninterrupted rally" since October when it was priced at $1,810 an ounce.

Furthermore, the ongoing geopolitical tensions, particularly in the Middle East, have intensified the demand for safe-haven assets like gold, pushing its price near record peaks. The fluctuating news from the region casts doubt on the success of ceasefire talks between Israel and Gaza, thereby boosting gold’s appeal as a secure investment.

Moreover, the anticipation of a September rate cut by the Federal Reserve, as indicated by the FOMC minutes, has solidified expectations and added to the market anticipation, keeping gold prices steady near their all-time high.

Price Action: At the time of writing on Thursday during market hours, iShares Gold Trust Micro IAUM was trading 1.32% lower at $24.72, SPDR Gold MiniShares Trust GLDM was down by 1.32%, and iShares Gold Trust IAU was trading 1.43% lower, according to Benzinga Pro.

Read Next:

• Amid Heated Trump-Harris Battle, Crypto Industry Pours ‘Unprecedented’ $119M Into 2024 Elections

Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari