In a recent interview with Kitco News, Christopher Vecchio, senior market strategist at DailFX.com, said that gold’s move through $1,800 had breathed new life into the market.
If we do continue to move higher from here, I could see us getting up to $1,850 or so before the market decides it wants to take a little bit of a breather,” he said.
June gold futures last traded at $1,835.50 an ounce, down 0.11% on the day.
Not only did the gold market score a strong technical breakout, but Vecchio said that the market has strong fundamental support as inflation and uncertainty continue to dominate financial markets.
Looking at consumer prices, Vecchio said that he wouldn’t be surprised to see inflation rise 3% or 4% by the summer.
consumers start to buy more, Vecchio said that the outlook is still uncertain, and it is going to take some time to create sustainable momentum.
“We just had a pandemic where we were running around, putting up signs in our front yard, supporting essential workers,” he said.