[ad_1]
Gold is having a solid month.
The precious metal edged down on Monday after posting its third consecutive weekly gain as investors flocked to the safe-haven asset amid concerns about the global economic recovery.
Gold prices have risen nearly 2% over the past three weeks, hovering around $ 1,800 on Monday.
Gold is entering a strong seasonal period, Newton Advisors chairman and founder Mark Newton told CNBC’s “Trading Nation” on Friday.
Typically, metal bottoms hit a low in June or July and then rise sharply in early fall, Newton said.
While higher interest rates and a stronger dollar could cap gold’s gains, a move above $ 1,855 would fuel another higher leg, he said.
Conversely, “under 1750 we might actually have a pullback towards the end of July near the March lows. This should be a great time to buy gold,” he said.
The Commodity Futures Trading Commission’s trader commitments report for gold has yet to reach extremes, indicating that investors may still have a chance to buy, Newton said.
“If we had a final color of gold it would definitely get us into the area where I think we could really be confident in the longs,” he said. “So we’re getting there, but I think seasonality should serve as a tailwind in the coming months.”
Newton suggested playing the game with gold-based exchange-traded funds such as the SPDR Gold Trust (GLD), iShares Gold Trust (IAU) or VanEck Vectors Gold Miners ETF (GDX).
Another market analyst was not so optimistic about the outlook for gold.
The narrative that growth and inflation will return to pre-pandemic levels seems premature, said Steve Chiavarone, portfolio manager, equity strategist and vice president of Federated Hermes.
“We just don’t agree,” Chiavarone said in the same “Trading Nation” interview. “We think they’re going to move into an upper range, a range of over 2% growth, over 2% inflation [and] therefore more than 2% of returns. “
This tends to cultivate interest in more value-oriented investments at the expense of safe-haven assets like gold, Chiavarone said.
“Despite the seasonality issues, this is really the engine to move people away from safe-haven transactions like treasury bills and gold into much more cyclical and anti-inflation hedging games, more like cyclical value and d ‘other types of industrial products,’ he said. “We are in the process of erasing that.”
Warning
[ad_2]
Source link