KITCO NEWS – As gold prices trade just above five-year lows, one long-time commodities researcher says the metal may see short covering rallies, but any uptick is unsustainable. ‘You might see these short-term rallies, every time shorts get overstretched, but nothing beyond that which would take prices up substantially,’ Rohit Savant, CPM Group’s research director, told Kitco News Thursday. He said that there will not be sustainable gains in gold prices as he expects prices to remain range-bound at these lower levels over the next few years. Over the shorter term, Savant said that gold has the potential to move up by $100 in the second half of the year. ‘[It] may even go back to $1,200-1,220 [an ounce],’ he said, reiterating that he doesn’t think anything beyond that level is likely for the beleaguered precious metal. According to Savant, the metal is lacking ‘fresh news’ to push prices higher.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
