Gold is up 34% since start of the year, expect volatility at these prices: RBC Wealth Management
(Kitco News) Expect additional volatility at gold’s new price levels of well above $2,000 an ounce, says RBC Wealth Management managing director George Gero. The yellow metal began the year at $1,520 an ounce, now up around 34% since January. “Keep looking for volatility at these prices, quick profit-taking, sudden unexpected headlines, or central banks buying or selling taking place,” Gero writes. The usual drivers are continuing to support gold, including COVID-19 pandemic, U.S.-China tensions, stock portfolio hedges, U.S. elections headlines, stimulus legislation, and other geopolitical concerns. “The trend is my friend motto adding momentum traders as we see large added options open interest in gold and silver,” adds Gero.