“The overall interest rate environment is expected to remain low as the Federal Reserve hikes another two or three times next year before ending its tightening cycle, said Melek by phone on May 31,” according to Bloomberg. “This, coupled with fully valued equities, geopolitical risks, and a downward trend in mine supply, will see increasing pressure to buy gold, he added.”

Melek said in the Bloomberg interview that he expects gold prices will average $1,290 an ounce in the third quarter and $1,300 per ounce in the fourth quarter.

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

Tom Lydon’s clients own shares of GLD.