After increasing by more than 50% since the beginning of the year, the world gold price is currently fluctuating around 4,200 USD/ounce, which is considered a strong resistance zone. However, analysts believe that a temporary price stagnation is completely normal in a prolonged price increase cycle.
Mr. Richard Laterman - Investment portfolio manager at ReSolve Asset Management ( Canada) - commented to Kitco News that the current accumulation trend should not be misunderstood as a weakening, because "any decline in gold is a buying opportunity".
With a gain of more than 50% in 2025, it is no surprise that gold is temporarily flat. But the factors driving prices over the past year have remained the same, and will even be stronger as we move into 2026, Laterman said.
According to him, three main factors supporting gold prices are: global geopolitical instability, the growing US budget deficit, and the Fed's policy easing trend.
geopolitical tensions may have cooled down somewhat, but the risks are still significant. Meanwhile, US public spending shows no signs of decreasing and is unlikely to reach budget balance in the near term," he analyzed.
Investors now see an 87% chance of a rate cut this week, marking the start of a new easing cycle. The market is also pricing in at least three interest rate cuts in 2026.
In addition to cutting interest rates, the Fed could restart the quantitative easing (QE) program to add liquidity to the already tense financial system.
In an environment where nominative interest rates have decreased and inflation is still high, the purchasing power of legal currencies will weaken. Keeping cash at this time can become a burden, while gold is a barrier to protect the value of assets" - he commented.
According to Laterman, gold prices anchoring at $4,200/ounce is a natural part of the market repositioning process, before entering a new uptrend. He said that this price is becoming an "attractive area" for medium and long-term speculative cash flow.
"The amazing thing is that the financial market is fluctuating too quickly, causing many investors to lose the ability to react in time. Owning a portion of the gold in the portfolio helps slow down the market and allows them to assess the situation more cautiously, Laterman added.
He predicted that if the Fed continues to cut interest rates in 2026 and inflation does not decrease sharply, gold could approach the 5,000 USD/ounce range, thanks to its growing role as a "stable anchor" in the global investment portfolio.
ReSolve Asset Management the company Laterman is running currently manages more than $300 million in assets, with gold being a strategic pillar in the balance sheet. We are people who strongly believe in the long-term value of gold, he affirmed. That is an irreplaceable asset in a world where money is depreciating rapidly".
