Kitco News -Bloomberg Intelligence: Gold Is Heading Towards $1,400, Not $1,200
Article by Anna Golubova in Kitco News
The gold market gauge is turning from bear to bull, with the metal most likely heading higher towards $1,400, according to Bloomberg Intelligence (BI).
Gold will not be stuck around the $1,300 level for much longer, with the market waiting on peak U.S. dollar and more volatility in the equity space to push prices higher, said BI senior commodity strategist Mike McGlone.
Gold’s set-up looks similar to that of 2002, when the U.S. dollar peaked and the gold market turned bullish, McGlone pointed out.
“A peak in the trade-weighted broad dollar should seal a gold recovery, more so than in 2017. Then, stock-market volatility was still declining toward multi-decade lows while rates and yields were on the rise. The opposite conditions are in place now, with a strong dollar the final pillar for gold,” he wrote.
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