Gold remains in a ‘very strong phase,’ Alamos Gold CEO tells Investing.com By Investing.com

The gold continues to shine. The yellow metal recently breached the $2,500 mark, and industry leaders have expressed strong confidence in its sustainable market.

In an exclusive interview with Investing.com, Alamos Gold (NYSE: ) CEO John McCluskey said the precious metal is still in a “very strong phase,” highlighting the strategic opportunities ahead for investors.

Why gold prices are hitting record highs

The rise in the price of gold to record levels in recent weeks has been driven by a confluence of economic factors and investor sentiment. One of the main drivers behind this upward momentum is the growing anticipation of rate cuts by the Federal Reserve. Last week, Fed Chairman Powell told the Jackson Hole Symposium that “the time has come for policy to adjust.”

Anticipation of rate cuts fueled demand, pushing gold prices higher.

Additionally, a weaker US dollar, often linked to expectations of lower interest rates, further supported gold’s rally, while fears of a global economic slowdown also added to gold’s appeal.

In a recent note, UBS analysts said: “Dovish Fed expectations – with UBS economists now forecasting three 25bp rate cuts this year – lower real rate movement and a weaker US dollar were all positive for the price of gold”.

They also added that they do not believe gold is currently overvalued and cite macroeconomic factors, investor positioning and market dynamics as factors that show there is potential for further price growth.

Meanwhile, Citi analysts said in July that gold prices could rise to $3,000 an ounce as financial flows show the potential for significant expansion. The bank said at the time that a dovish pivot by the Federal Reserve “should be bullish for gold and silver through the end of the year,” with positive effects also expected for base metals such as copper.

What experts say about the price of gold

That optimistic sentiment is shared by Alamos Gold CEO John McCluskey. He told Investing.com that when assessing the multi-year outlook for gold prices, he is “quite bullish on some of the price targets.”

“I myself anticipated a target of $2,650 by the end of the year,” said McCluskey, who has been in the gold mining industry for more than 35 years.

“We’ve been in a bear market for the most part,” he added. “It is clear, however, that we are in a very strong growth phase and there are a number of factors driving record prices outside of central bank purchases in Asia and de-dollarization.”

McCluskey cited political and international turmoil, as well as the US debt problem and the strength of the economy, as long-term factors that should continue to drive gold prices to new highs.

“The US debt has grown exponentially in recent months, reaching its current level of over $35 billion,” he adds. “Combined with anticipated interest rate cuts from the Fed and the upcoming US election, as well as growing concerns around the US economy, these are all factors that can further increase the potential for gold.”