Tariq said that Credit Suisse sees gold in a holding pattern right now; however, it is still a positive environment for gold producers.
“If you had told gold producers years ago that this is the gold price, you’ll have to deal with it.
However, the bank is not so optimistic on gold in the long term.
He added that gold could struggle in the next few years as inflation pressures stabilize at higher levels, with both nominal and real interest rates pushing higher.
“At some point, if inflation turns out to be stubborn, the market reassesses that short rate expectation to something higher, gold and a number of other assets are not going to like that news.
“It’s related to the fiscal challenges and the big, expensive problems that that governments have and the big debt stock that we have.