“If we can break above $1,300, we could have a new rally in gold, because the market is going to essentially assume that the Fed will stay stationary until December,” he said Wednesday on CNBC’s “Trading Nation. “Investors are looking anywhere to park their funds where there is yield.”
Related: 31 Gold ETFs Investors Should Size Up
Some analysts still believe that is possible gold ascends to $1,500 per troy ounce. Gold bullion prices have surged almost 20% this year as the Fed previously signaled it would slow the pace of interest rate normalization this year – higher interest rates typically weigh on gold prices since the hard asset provide no yield and would become less attractive to higher-yielding conservative debt assets in a rising rate environment.
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Tom Lydon’s clients own shares of GLD.