Should Investors Give Into This Gold Hype? - RBC’s George Gero

KITCO NEWS — Gold hit a fresh 3-month high and breached a key technical barrier Wednesday, but should investors be giving in to the hype? 'I don’t think it’s a question of hype,’ one veteran trader tells Kitco News. RBC Capital Markets’ George Gero says gold investors had a great buying opportunity in gold late last year when prices took a dip, especially since prices are now up around 7% year-to-date. 'The question is: is it really different this time or is this sort of a bounce that may not last?’ The longtime precious metals strategist looks for gold prices to move higher this year as the Federal Reserve only raises interest rates twice, instead of the previously schedule four hikes. 'I think by the end of the year, I’m hoping to see, or at least, I’m prepared to see $1,200-1,300 [gold],’ he says. ‘But, I don’t think we’re going to see the funds jumping in until we start to stabilize at over $1,200,’ he adds. April Comex gold futures managed to breach above the key 200-day moving average on Wednesday, a key technical barrier last taken out in October, and settled the day 1% higher at $1,141.30 an ounce. Despite the sudden interest in gold, as seen by inflows into the market, Gero says the yellow metal remains ‘under-invested’ by funds.