Things Are About To Heat Up For Gold - TheStreet

By Daniela Cambone / July 06, 2018 / www.thestreet.com / Article Link

(Kitco News) - Gold has been held back by a stronger U.S. dollar but the yellow metal could get a boost if the Federal Reserve reigns in on rate hikes, this according to Chris Mancini, research analyst at Gabelli Funds.   "I think what ultimately drives the gold price higher will be the Fed pausing and then the market pricing in the Fed easing. And so if the Fed is easing while the ECB [European Central Bank] is printing and the BoJ [Bank of Japan] are both printing money then I think gold will do really well," Mancini told Kitco News.   The commodities analyst noted that while tailwinds may be present for gold, he expects the yellow metal to trade range-bound for the remainder of the year.   "I think that gold will be range-bound for the rest of the year, between this $1,250 [an ounce] and $1,350 range," he said.   Mancini said that for the short-term, speculators are driving down gold prices as they buy U.S. dollar futures and short gold futures.   "The stronger dollar has been due to this kind of trade war that's been going on between the U.S. and China and so it's really been a haven trade," he said.   Mancini added that the Fed will only likely ease up on hiking if macroeconomic conditions worsen.   "I think what gets gold to really move will be a view that the economy is going to slow and the Fed is going to halt its tightening cycle," he said.   A Special Offer From TheStreet   Be sure to check out "7 things investors must know". You can prep your portfolio for 2018 and beyond with these tips from our experts. Just click here!

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