Gold’s rally isn’t over yet by any means, as one analyst sees the upward momentum continuing.
Phil Streible, senior market strategist at RJO Futures, told Kitco News that prices for the yellow metal may still see much higher levels from here.
“We should continue to see that break through $1,400 and I anticipate that a lot of the short sellers will end up giving up at that level. So, no telling how high we can go from here, it’s kind of got that perfect storm going on with increasing geopolitical risks and then also a dovish Fed,” Streible said.
Paul Tudor Jones of Tudor Investment has said that once $1,400 an ounce is breached, the next level is $1,700, and Streible said that is definitely possible.
“It is entirely possible. The Fed, it’s factored in at 100% that they will cut next meeting. If you look at the last time we had this aggressive hike cycle followed by rate cuts, they had higher levels to go down from, so with the Fed only being at 2 and a quarter right now, if they cut a half, that doesn’t give them much firepower in order to stabilize the economy,” he said.
Another round of quantitative easing could happen, Streible added, and that could push gold much higher.