Bullion’s bounce has not convinced all market observers that a sustained rally is in store. Although precious metals ETFs have recently displayed some strength, gold is still in a lengthy bear market, giving some traders pause about how much more near-term upside the yellow metal has in store.

Gold has been in a 3-year bear market, which has seen failed rallies on the back of various news events. Continued strength in the US economy and labor market has offset political and economic events since the Gold market turned bearish in 2013.

Relative to what was seen with gold in 1999, “ a similar chart pattern has unfurled itself this time around, Wald says. Consequently, he expects only mild gains at best for the yellow metal in remainder of the year,” according to CNBC.

SPDR Gold Shares

Tom Lydon’s clients own shares of GLD.