Despite its’ current status, gold prices will continue to rise this year, according to a financial executive.

Neil Pereira, a principal investment officer of the International Financial Corporation (IFC), states that we’ve seen gold prices fall in the past year. He believes the significant increase in the last quarter of this year is partly driven by expectations of reduced long term interest rates.

However, according to Pereira, interest rates are just one-factor affecting gold prices. He says we’ve seen investors going back into the ETFs, all increasing their purchases.

He also says that over the next year, we can expect to see gold continue to rise. Considering the logistics of supply and demand, he notes that although the market has been consistently in balance, the future includes long-term supply increases.

However, gold prices are currently struggling to find momentum with the price. June gold futures last traded at $1,284.40 an ounce, up 0.23% on the day.

The IFC’s primary goal is to work collaboratively with the private sector to assist developing countries in expanding their mining industries. Most recently, it helps complete the Sangaradei project in Guinea. Pereira says it has an immediate impact on the local community, creating jobs and stimulating the environment.

Past experiences with foreign investment in developing countries’ mining industries have proven challenging. Pereira states that the key to navigating the real obstacles involves a two-fold solution.

When dealing with governments, he says, it is critical to ensure compliance with the mining code. When dealing with local communities, he emphasizes the significance of securing the social license to operate.