Video News/In Focus with Jeremy Szafron

(Kitco News) - Gold's break above its two-month trading range marks a genuine breakout with room to run toward $4,500, and the shift has prompted a sharp change in positioning, according to Florian Grummes, Managing Director of Midas Touch Consulting. Speaking with Kitco News, Grummes said he has raised his invested allocation from roughly 50% to 80%, moving out of a cash position he had held since January, after gold cleared the $4,000 level and reclaimed its 50-day moving average. He put his summer target at the 200-day moving average near $4,490, while cautioning the move could either be a rapid short squeeze or a slower rally that lets traders buy the dips. Grummes tied the shift to what he called a fundamental change in financial plumbing, a new Federal Reserve facility allowing Japan to obtain dollars without selling US Treasuries, which he argued is flooding markets with fresh liquidity. He also set a summer silver target of $70 and said he had added to junior mining positions ahead of an expected wave of sector M&A.