Gold Prices Well Supported - BlackRock Gold prices should remain supported in an environment of falling real interest rates, according to the world’s largest asset management firm.
Wednesday, in an interview with Bloomberg Television, Evy Hambro, global head of thematic investing at BlackRock, said in a low rate environment, investors are now turning to gold as store of wealth as global uncertainty continues to sweep through financial markets.
“Getting little return on your cash and the prospects of [interest] rates going even lower, obviously the competitiveness of gold becomes much better,” he said. “We are seeing a lot of demand for gold.”
But it’s not just investors who are enjoying the rally in gold prices; Hambro said that major producers are benefiting from the current uptrend, which could continue to drive merger and acquisition activity within the sector.
He added that depleting resources continue to be a major issue for gold producers and there could be a rush to replace those gold ounces.
https://www.kitco.com/news/2019-07-11/Gold-Prices-Well-Supported-BlackRock.html