George Cheveley, Natural Resources Portfolio Manager at Ninety One, anticipates that gold will stage a recovery over the coming months. This forecast comes after precious metals experienced significant unwinding from their record-breaking rally, leading to some losses. Cheveley emphasized on Bloomberg's Horizons Middle East and Africa that despite these fluctuations, he believes the core structural drivers supporting precious metals remain firmly in place.
While gold saw a notable dip, falling about 24% since the Middle East conflict began in late February and slipping below its 200-day moving average, it recently advanced back above $4,900 an ounce as dip-buyers entered the market. This rebound indicates underlying demand. Conversely, other precious metals like silver, platinum, and palladium have shown mixed performance, with silver falling 0.2%, platinum remaining largely unchanged, and palladium edging lower on June 30, 2026.
The resilience of the US economy and a stable labor market are enabling the Federal Reserve to maintain interest rates, which previously led to a 'pause' in the bullish gold story. However, analysts like Amy Gower from Morgan Stanley and Cheveley himself highlight multiple ongoing drivers for precious metals. J.P. Morgan's Gregory Shearer also notes the long-term structural bullish case for gold, despite short-term pressures from hawkish Fed sentiments.
Cheveley's outlook aligns with the view that while short-term market dynamics and geopolitical events, such as the US-Iran talks, can create volatility, the fundamental factors driving precious metals, including gold, will likely lead to a recovery in the near future. Spot gold was trading near $4,000 an ounce on July 30, 2026, and steadied after a 2% drop over the two prior sessions, reflecting a market that is consolidating before potentially heading higher.
