Gold is 'undervalued' and could see 'aggressive move to the upside,' despite Fed rate hikes

Montreal (Sept 16) Fed rate hikes have put downward pressure on the gold price, but gold will eventually break out aggressively, said Luke Alexander, CEO and President of Newcore Gold (TSX-V: NCAU), a Vancouver-based gold miner.

Gold's price fell by 8.6 percent over the year, despite U.S. inflation peaking at 9.1 percent in June.

Alexander mentioned that as the Fed raises rates, the U.S. dollar would continue to perform well, which will be an "overhang on the gold price." He added that when "expectations start to change, I think that's when we'll start to see gold perform… It could be a very aggressive move to the upside."

"[Gold] is undervalued in terms of the momentum that I see in the next six months, in terms of inflation starting to ease, as well as some of the tensions that we're continuing to see across the world," he said.

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