WisdomTree's Shah Sees Gold Rebounding $1,000 Within 1 Year as Inflation Threatens Real Rates
Updated
Updated · Kitco NEWS · Jun 8
WisdomTree's Shah Sees Gold Rebounding $1,000 Within 1 Year as Inflation Threatens Real Rates
1 articles · Updated · Kitco NEWS · Jun 8
Summary
A roughly $1,000 recovery from recent highs is achievable within a year, Nitesh Shah said, arguing gold’s latest correction looks temporary rather than a lasting breakdown.
172,000 U.S. jobs added in May pushed markets to price nearly 50-50 odds of a Fed rate hike by October, helping knock gold below key support and its 200-day moving average.
Shah said that selloff may be overdone because rising inflation could outpace the Fed, driving real interest rates deeper negative even if nominal rates stay unchanged.
Oil inventories are shrinking, goods inflation looks sticky, and any economic slowdown would add defensive demand for gold while debt-sustainability worries and steady central-bank buying underpin the longer-term case.