Gold, silver price unleashed; Will this summer be as explosive as 2020's?
(Kitco News) - It's going to take gold until the end of the year to rally to $2,000 an ounce, said Phil Streible, chief market strategist of Blue Line Futures.
"I really believe [gold] could get going. $2,000 would capture some headlines on the upside. I think it has the right dynamics for it. You need the Fed to backpedal. You need growth to kind of stall," Streible told David Lin, anchor for Kitco News.
However, it's unlikely that the rally will start this summer and mirror last summer's explosive price action, Streible said.
"You've got two different things. The 10-year [U.S. Treasury bond yield] hit its all-time low last August," he said. "We don't have the Treasury dynamic in there, so what happened then is different from now."
Additionally, investors from traditionally large gold markets, like India, need to shift their capital back into gold.
According to data from Chainalysis, investments in crypto assets among households grew from $923 million in April 2020 to nearly $6.6 billion in May 2021, representing a 612% increase.A shift back into gold from cryptocurrencies in India would provide a huge boost to the price, Streible said.
For more information on key price levels to monitor, watch the video above. Follow David Lin on Twitter @davidlin_TV.
An earlier version of of this article stated that Indian crypto investments grew from an aggregate $200 million last year to over $40 billion this year. Chainalysis has corrected data on Indian crypto investments.