No time for gold to move (yet)
Gareth Soloway: No (yet) time for gold to move, next calls for oil and uraniumYoutube
A strong US dollar creates headwinds for gold, but the yellow metal is holding up well.
“When the dollar goes up, gold usually reacts and goes down,” said Gareth Soloway, chief market strategist at InTheMoneyStocks.com. But this time around, there’s more to the story than that.
“The dollar is up 15% this year and gold is only down about 4-5% for the year,” he continued, explaining that normally if the dollar is up 15%, he would expect gold to fall 15%.
“The fact that it’s only down 4-5% tells you that it’s doing its job and holding its value very, very well, especially when you compare it to the S&P 500 (INDEXSP:.INX), the bitcoin or anything else,” Soloway said.
“Eventually the dollar will pull back dramatically and then gold will have its epic big move.”
In terms of price, he thinks the precious metal could return to US$2,000 or US$2,050 an ounce this year, but doesn’t see it climbing to US$2,400, the level he thought could be in. the cards in early 2022. .
“The strong dollar just took a lot of energy out of gold sales,” Soloway said.
He also talked about oil, where he sees more downside ahead as the US economy continues to signal that a recession is approaching. Recession fears in Europe and China are also not helping its outlook.
Soloway has a more positive view of uranium, mentioning that the Sprott Uranium Miners Fund (ARCA:URNM) has had “incredible movement” over the past two weeks.
“I think overall this is a bullish macroeconomic consolidation pattern,” he said, noting that this is a long-term positive for uranium. However, shorter-term investors should be cautious if the fund hits US$86 or US$86.50 and look for a pullback.
Watch the interview above to learn more about Soloway on gold, oil, uranium and all the markets.
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Securities Disclosure: I, Charlotte McLeod, have no direct investment interests in any of the companies mentioned in this article.
Editorial Disclosure: JInvesting News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views of Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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