Mubasher: BlackRock expected gold’s rally to the highest level since 2013 could continue further through the year, after the Federal Reserve indicated a readiness to cut interest rates, dragging the dollar down, Bloomberg reported.

“If we continue to see a pivot toward easier monetary policy from the Fed, then I think gold can go higher from here,” BlackRock Global Allocation Fund’s portfolio manager Russ Koesterich was quoted by the news outlet.

Gold has returned to the spotlight as appetite for safe havens was boosted by a slowdown in global economic growth against the backdrop of the escalating US-China trade conflict, while central banks worldwide struck a more dovish tone.

The European Central Bank (ECB) head, Mario Draghi, last week paved the way for a rate cut, while the ECB’s peers in Australia, India and Russia lowered borrowing costs.

The Fed on Wednesday held its benchmark rate unchanged on Wednesday, but hinted an end to a “patient” approach to monetary policy, and suggested a cut as early as next month.

“If we are moving into a period where the Fed or other central banks feel the need to ease monetary conditions, gold is probably going to have a better environment than it did earlier this year,” Koesterich said.

However, there is likely to be some resistance and consolidation on the near term, he noted.

“Gold, like bonds, has had a very large move, so it would not be surprising if there was some consolidation,” he added.

By 3:15 pm GMT, spot gold jumped by 1.05% to $1,414.26 per ounce, while US gold futures rose by 0.97% to $1,413.70 per ounce.