(Kitco News) The bottom in the gold price will be marked by the crude oil prices peaking, which is the most likely outcome, according to Bloomberg Intelligence.
“Probabilities are rising that the bounce in crude oil is done, with what we see as implications for a return to more-enduring upward trajectories in gold and bond prices,“ said Bloomberg Intelligence senior commodity strategist Mike McGlone.
A peak in crude at $70 marks the bottom in gold, McGlone specified.
After falling below $1,680 an ounce at the end of March, gold could have found its low, with prices now showing strength above $1,700 an ounce. At the time of writing, June Comex gold futures were trading at $1,756 an ounce, up 0.83% on the day.
“Brent crude adding distance below the 2021 high close of $69.63 a barrel is the more likely outcome, as we see it, with bearish implications for most commodities save gold,“ said McGlone. “Global crude was oversupplied amid slack demand before the pandemic, and having bounced toward the upper end of the range, risks appear tilted toward more of the same.