The recent rally in gold (GC=F) prices may be pointing to a possible recession, one macro strategist told Yahoo Finance, ahead of the Federal Reserve's anticipated interest cuts in September. Chris Mancini, Gabelli Funds associate portfolio manager of the Gabelli Gold Fund, joins Catalysts to discuss the precious metal commodity's recent run.

Mancini notes that there is growing interest in gold as Wall Street expects interest rates to fall soon, noting, "we are seeing the economy weaken." He highlights that gold-backed ETFs are also gaining traction amid these economic signs of weakness. The Gabelli Gold Fund manages several classes of their gold ETF (GLDIX, GLDCX, GOLDX, GLDAX).

"There has been this consistent solid base load demand from central banks," particularly in China, Manchini says. However, the recent rise in gold prices has largely been driven by ETF purchases as interest rates have fallen.

When asked about the impact of expected Federal Reserve rate cuts on gold prices, Mancini states, "If rates continue to decline after this projected next one September, I think that we'll continue to see inflows into the ETFs, and that will drive gold prices higher."

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This post was written by Angel Smith