Gold Corrects to Fair Value, Positioning for 25% Gain Through Q1 2027: WisdomTree's Shah

According to Nitesh Shah, Head of Commodities and Macroeconomic Research at WisdomTree, gold has corrected back to fair value this year rather than signaling the end of a secular bull market. Speaking to Kitco News following the Federal Reserve's June monetary policy meeting, Shah noted that markets have become overly aggressive in pricing future interest rate hikes, overlooking broader economic constraints. His valuation model, incorporating bond yields, the U.S. dollar, inflation, and speculative positioning, shows gold prices are now aligned with fundamentals after trading at an unusually large premium in January.

WisdomTree maintains a bullish long-term outlook, expecting gold prices to rise 25% by Q1 2027, with Shah stating that "over $5,000 is easily achievable." He highlighted sustained central bank demand, citing the World Gold Council's latest survey showing a record share of reserve managers planning to increase holdings over the next year. Shah added that continued inflows into gold products reflect the asset's appeal at lower price levels.