(Kitco News) - Gold prices appear to be stuck around $4,200 an ounce, but this resistance isn’t unexpected, and any dip in the price should be seen as a buying opportunity, according to one portfolio manager.
In an interview with Kitco News last month, Richard Laterman, Portfolio Manager at ReSolve Asset Management, said that with gold prices up more than 50% so far this year, investors shouldn’t be surprised to see some consolidation. However, he added that the factors that have driven prices through 2025 remain in place ahead of 2026.
The Canadian firm manages more than $300 million in assets.
“Tensions have eased slightly, but there's a lot of geopolitical strain in the system. So geopolitical uncertainty is still going to matter,” he said. “The debasement trade is very much alive and kicking. Further government spending is one of the few bipartisan topics in Washington so we shouldn’t expect to see any balanced budget anytime soon.”
Along with rising deficits, Laterman expects interest rates to continue to fall through the new year. Markets see an 87% chance of the Federal Reserve cutting interest rates later this week. Looking ahead to 2026, markets are pricing in at least three rate cuts next year.
In addition to easing interest rates, Laterman also expects the Federal Reserve to launch new quantitative easing measures as market liquidity has tightened in recent weeks.
Laterman added that in this environment, as nominal rates drop and inflation increases, the purchasing power of fiat currencies continues to weaken, which means holding cash could become a problem for some investors.
“It’s incredible how fast things are moving in financial markets, but holding some gold can help to slow things down,” he said. “It gives investors time to evaluate markets.”
With more liquidity flooding markets and falling interest rates, Laterman said that, along with gold, he expects equity markets will also continue to do well. He added that this dual trade is attracting more attention as ReSolve Asset Management's new fund, the Return Stacked U.S. Stocks & Gold/Bitcoin ETF (RSSX), has seen solid growth since its launch earlier in the year.
The fund aims to provide simultaneous exposure to U.S. stocks, gold, and bitcoin. For every $1 invested, the ETF is designed to offer $1 of exposure to U.S. equities and $1 of a gold/Bitcoin strategy.
The fund’s gold and Bitcoin position is risk-weighted, and Laterman explained that the fund is fully divested of the cryptocurrency because of its recent volatility.
“We expect equities will continue to do well this year, but we’re big believers in gold,” he said. “Gold is an important ballast for a balanced portfolio.”
Laterman said that he also sees potential for Bitcoin in 2026; however, he added that its volatility needs to fall.
“ The U.S. monetary system has lost its ability to unwind the balance sheet. They need to pump liquidity to keep the system floating. In this environment, we believe Bitcoin has a purpose as an alternative asset. It will play an important role in the new digital economy.”
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