The Federal Reserve is targeting three interest rate hikes next year, but other global central banks remain accomodative.

Looking ahead, the ongoing negative interest rate environment, with European and Japanese central banks cutting benchmark rates deeper into the red to promote growth, could push investors toward gold bullion as a more stable store of wealth.

Reduced supply could also boost gold ETFs next year.

“Regardless of when peak gold might occur, it’s pretty widely accepted that all of the low hanging fruit, with regard to major deposits, has already been picked. As a consequence, we’ll likely see an increase in gold recycling, but the metal’s price could also rise as supply becomes restricted,” according to ETF Daily News.

For more information on the gold market, visit our gold category.

Tom Lydon’s clients own shares of GLD.