Gold is still trading weaker with investors bracing for the hike as soon as September. However, this analyst consider a short rally is quite possible in the second half of the year.
Rohit Savant, research director at CPM Group, is another visitor of the Kitco News studio where he reflects on how high gold can rise and what was the main driver of the recent weakness in the metal.
Savant says that there is a lack of fresh fundamental news which could push it higher. There are many long-term fundamental issues, but none is fresh. Market players have known everything for many years.
Short-term investors switched from gold to equities, while long-term investors are not as aggressive as they used to be back in 2012 and 2013.
The analyst also reflects upon what should happen in order to spur this short-term rally.
