“Gold is taking a hammering over the past few weeks because the dollar has been in a strong uptrend,” Schlossberg said. “The reason the dollar has risen because U.S. yields are high. The 10-year now is comfortably parked above the 3% rate, and that always hurts gold which has no yield.”
He added that if investors have the assumption that U.S. yields are going to inch up to the 3.25% level in the next several months, it’s very likely that gold will sell-off.
“But the only thing that can support gold at this point is some sort of geopolitical event that could create a flight to safety trade,” he said.
Click below to watch Schlossberg’s full analysis of gold and the impact of the U.S. dollar:
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