$1,600 is the next target for gold prices
(Kitco News) -A large amount of capital has flowed into gold in recent days, and fundamentals may continue to drive price momentum, this according to Phil Streible, senior market strategist of RJO Futures.
“We’ve seen an incredible move in there, we saw about 489 thousand ounces go into gold yesterday and about 1.2 million ounces go into silver ETFS. It’s the largest amount of gold holdings we’ve seen all year long if you look at the derivatives as a whole,” Streible told Kitco News.
Streible noted several fundamental factors underlying the trades.
“I do believe that we’re going to hit $1,600 [an ounce]. I think the fundamentals are quite supportive. The Fed should be pretty aggressive cutting rates. They might disappoint at the tail end of it. Globally, interest rates are being cut everywhere. The trade war, the trade war, the trade agreement negotiation, that seems to be kind of the biggest factor because you look on Friday, it really got nasty between President Trump and China and gold futures surged closing on the high,” he said.
On silver, Streible said that it may be a while before the white metal climbs to historically high $50 an ounce levels.
“I think it’s going to be more of an organized rally but you never know. Once the big money comes into these markets, these markets really move. We saw quite a bit of funds flow into platinum, platinum’s up $35 today, and that’s a smaller market,” he said.
He added that while a parabolic move could occur, he doesn’t see it happening quite yet.