Gold is expected to carve fresh highs this year on the back of the inflation uptick, “Fat Prophets” analyst told CNBC.
- Fat Prophets Resources Analyst David Lennox is betting on gold as a surge in prices usually comes with higher inflation readings.
- Should prices surge, Lennox urged investors to look into gold exchange-traded funds to score one-on-one price movement without the management fees.
- For long-term investors, investors should pour their funds into gold miners as they have growth capacity, and possible dividend payouts.
- Lennox also scored gold as a safe investment amid market uncertainty hounding the dollar, providing a good tailwind for gold.
- Gold is trading at $1,911 an ounce, up 0.66% year-to-date after dropping to as low as %1,700 per ounce in March.
- The United States Federal Reserve last year kept interest rates low, in efforts to boost economic recovery and keep financial markets afloat after the COVID-19 pandemic.
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