Gold Rally Hinges on Sustained Investment Demand and Fed Inflation Stance – ING’s Manthey

Gold prices have surged past $4,600 per ounce on renewed investment demand and U.S. fiscal concerns. ING strategist Ewa Manthey points out that the Treasury’s debt buyback increase to at least $4 billion has reinforced gold’s role as a hedge against currency debasement, yet sticky inflation poses hurdles for a steady climb.

Global gold ETFs attracted $3 billion and 23 tonnes in July, with another 18 tonnes added in a single August session. Central bank buying stayed firm at 51 tonnes in June for a first-half total of 102 tonnes, led by Poland and China.

ING’s Q4 average forecast stands at $4,150 per ounce with upside risks from a weaker dollar and ETF inflows. The Jackson Hole symposium and the Fed’s response to energy-driven inflation will shape whether the recovery gains further traction.