NEW YORK (Kitco News) - When market sentiment was extremely bearish for gold, one analyst stuck with his $1,300 call.

Now that the yellow metal hit that level and continues to trade near 15-month highs, Mike McGlone, a veteran trader and founder of McGlone Advisors, remains bullish on gold.

'The near perfect storm against gold; the Fed tightening in a global deflationary environment, the strong U.S. dollar, a strong stock market and collapse in commodity prices -- appears to have ended and may be reversing,' he said in an interview with Kitco News.

Gold has recovered as Federal Reserve tightening expectations have diminished and the stock market and U.S. dollar rallies have wobbled, he said.

'Tailwinds for gold and silver are building on the back of a likely bottom. Gold bottomed late in 2015 just above $1,000 an ounce as the Fed began tightening in a global deflationary environment.'

According to McGlone, there is still 'tremendous' value in gold and silver, and investors should be 'overweighting' these markets while avoiding equities.

However, looking at silver, which has also rallied to 15-month highs, McGlone is a little more cautious. 

'It should continue to rally but silver will have a problem if the global economy continues to have more weakness,' he said. 'When was the last time we saw an estimate of global GDP that was improved or higher? So that trend is a bit bearish.'

June Comex gold settled down $4.00 at $1,291.8 an ounce while July silver futures also settled lower at $17.499, down 18.3 cents on the day. 

McGlone made his initial $1,300 forecast in August of 2015 after gold hit a multi-year low in July and sentiment was extremely negative in the marketplace.

This article is commentary by an independent contributors. At the time of publication, the authors held no positions in the stocks mentioned.

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