Gold
is
flying
right
now.
Prices
of
the
precious
metal
have
soared
to
record
highs
due
to
expectations
of
interest
rate
cuts
and
geopolitical
tensions
around
the
ongoing
wars
in
Ukraine
and
Gaza.
After
the
U.S.
Federal
Reserve
left
rates
unchanged
and
penciled
in
three
rate
cuts
this
year,
gold
prices
soared
as
high
as
$2,222.39
per
ounce
—
a
new
record
high
—
on
Thursday.
The
asset
has
since
pared
gains
to
last
trade
at
levels
around
$2,208.
Analysts
are
expecting
gold
prices
to
have
even
more
upside
from
here
.
There
is
a
common
belief
that
gold
prices
tend
to
rise
when
interest
rates
fall,
with
bonds
becoming
less
attractive
as
they
no
longer
deliver
attractive
yields.
Top
hedge
fund
manager
David
Neuhauser
is
predicting
the
price
of
gold
to
reach
$2,500
by
the
end
of
2025,
and
$3,000
by
2030.
“You
have
yields
starting
to
claw
back,
you
have
the
S
&
P
[500]
near
record
highs
as
well.
And
underneath
the
surface,
you
have
the
Fed
looking
to
potentially
cut
rates
here
sometime
this
year,”
Neuhauser
told
CNBC
Pro
this
week.
In
updated
comments
to
CNBC
Pro
after
the
Fed
decision,
he
said:
“The
Fed
today
continued
to
reflect
3
cuts
are
coming
and
with
that,
gold
has
now
hit
an
all
time
high
as
expected.
The
USD
is
weakening
therefore
commodities
should
break
out
and
soon
be
the
best
asset
class
given
inflation
has
risen.”
A
weaker
dollar
tends
to
drive
up
the
price
of
gold
as
people
has
more
purchasing
power
to
buy
more
of
the
precious
metal.
Neuhauser,
who
is
founder
and
chief
investment
officer
of
Livermore
Partners,
added
that
there’s
another
reason
to
go
into
gold.
“I
think
another
aspect
of
why
gold
is
something
to
go
into
is
that
when
you
look
at
the
massive
deficits
that
are
being
built
in
the
U.S.
and
up,
they
talk
about
how
many
trillions
in
debt
we
have,
I
mean,
that
is
going
to
continue
to
move
higher
and
then
we
have
an
election
later
this
year,”
Neuhauser
added.
He
says
that
regardless
of
who
gets
elected
in
the
U.S.
presidential
election,
there’s
“still
going
to
be
a
lot
of
pressure”
to
continue
stimulating
the
economy.
Under
President
Joe
Biden’s
plan,
there
will
be
“massive”
fiscal
spending,
he
noted.
That
means
it’s
unlikely
to
be
a
situation
where
debt
gets
lower.
At
some
point,
the
U.S.
dollar
is
going
to
come
under
pressure,
he
said.
When
the
government
accumulates
higher
debt,
it
may
print
more
money
or
increase
spending,
potentially
driving
up
inflation
—
in
this
situation
investors
may
turn
to
gold
as
a
hedge
against
higher
prices.
Stock
picks
Want
to
play
the
gold
theme
via
gold
miners?
Even
in
this
environment,
not
all
gold
stocks
are
equal
–
with
some
big
miners
underperforming
despite
the
record
gold
price,
according
to
Neuhauser.
Examples
he
named
included
Newmont
and
Barrick
Gold
,
which
he
says
have
high
costs
or
“difficult
geography.”
Neuhauser
says
what
matters
for
gold
miners
is
where
they
are
located
as
geopolitical
risk
is
a
factor.
He
would
pick
miners
based
in
OECD
countries
with
“good
government
relations”
and
without
“crazy
royalty
rates
on
taxes,”
in
safe
jurisdictions,
and
that
have
great
management
teams.
They
should
also
generate
good
free
cash
flow,
and
can
pay
dividends.
One
stock
that
Neuhauser
is
bullish
on
is
Canada-listed
Amaroq
Minerals
.
“Amaroq
is
a
great
‘pure
play’
mineral
company
that
is
about
to
get
into
production
in
2024
with
a
high-grade,
low-cost
mine
as
well
as
a
vast
opportunity
within
copper
and
nickel
and
is
in
an
OECD
country.
It
is
the
last
frontier
and
they
have
the
best
licenses,”
he
said.
Neuhauser
also
named
U.S.-listed
Coeur
Mining
,
a
miner
with
mostly
gold
and
silver
U.S.
assets
which
he
says
has
underperformed
for
years.
“We
think
that
this
is
the
time
that
the
stock
could
outperform
over
the
next
few
years
because
they’ll
get
to
free
cash
flow,
which
will
be
a
first
right
now
and
they
can
start
potentially
paying
dividends,”
he
said.
A
third
stock
he
named
is
Canada-listed
Wesdome
Gold
Mines
,
which
he
says
fits
his
overall
criteria
for
gold
miners.
Neuhauser
says
commodities
–
including
gold
and
oil
–
could
form
up
to
25%
of
investors’
portfolios
right
now.
He
concedes
that’s
higher
than
the
“rule
of
thumb”
which
is
around
10%.
“Because
I
do
think
you
want
to
defend
yourself
against
a
weakening
dollar.
You
also
want
to
defend
yourself
against
inflation
as
well,”
he
said.
“And
a
lot
of
these
companies
are
trying
to
pay
good
yield.”