Veritas Investment Research analyst expects gold rally to continue

On Monday, the price of gold hit a record high once again, reflecting a growing safe-haven demand amid uncertainty in global financial markets, as reported by Yahoo Finance.

Martin Pradier from Veritas Investment Research noted that the pessimistic sentiment among both retail and institutional investors has coincided with a weakening dollar and increasing concerns about the US budget deficit. These factors are prompting central banks to boost their gold purchases, which in turn is supporting the asset prices.

Som Seif from Purpose Investments pointed out that given the rapidly shifting policies of the US president, traders are exploring alternatives to the dollar. In this context, they are focusing more on gold.

Pradier mentioned that it's challenging to predict when the gold rally might peak. However, the current conditions indicate that the upward trend could continue over the next few months. He also highlighted that countries like China and Japan, two major holders of US bonds, have ample opportunities to convert a significant portion of their assets into gold.