Gold has a good foundation for a rally past its current trading range, this according to Mike McGlone, senior analyst at Bloomberg Intelligence.
“In the last 52 weeks, the range for gold is the narrowest in 13 years. It needs something to really shift to not go higher,” McGlone told Kitco News. McGlone noted that the strong U.S. dollar has been one reason why gold hasn’t broken out of its range yet.
“What’s really happening to the dollar this week is that it’s kind of been following yields, but yields are pretty high at 3%.” He added that 3% is a “pretty good level for yields to peak,” and a subsequent peaking in the dollar remains bullish for gold.
- Source, Kitco News
