‘Perfect Storm Against Gold Reversing,’ Says Analyst That Forecasted $1,300 Gold

Kitco News -- When market sentiment was extremely bearish, one analyst stuck with his call for $1,300 gold (GLD) - Get Report . 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 Fed 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.'  June Comex gold was last down $6.50 at $1,289.30 an ounce.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.