The gold market continues to struggle to find momentum as support holds above $1,450 an ounce, but one fund manager said that he doesn’t see any rush into gold in the near-term as the U.S. dollar is on the verge of surging higher.
In a recent interview with Kitco News, Keith Dicker, founder and chief investment officer at IceCap Asset Management, said the fundamentals for holding gold have strengthened this past year. Still, he added that the U.S. dollar remains a significant headwind for the yellow metal over the next few months.
“Gold is a hedge against geopolitical and financial uncertainty risk and if you are holding gold, then you are feeling pretty good right now,” he said.
However, he added that anyone who missed the 20% rally this summer will still have another opportunity to see some gains, but those investors need to be patient. Dicker’s comments were initially made after gold prices dropped from September’s six-year high, but continued to hold support above $1,500 an ounce.