Gold gave up more than $25 an ounce to a week low on Thursday, after the Federal Reserve decided to keep stimulating the US economy, but hinted that tapering of the program could still happen this year.
CNBC interviewed Bank of America Merrill Lynch’s Head of Global Technical Strategy MacNeil Curry after the negative reaction in the gold market to the Fed announcement on monetary policy.
An inveterate gold bull, Curry did not rule out a move back to above $1,500 an ounce for the price of gold:
“This is still a long-term bull trend,” says Curry. “There has been no damage to its long-term uptrend which began back at the turn of the century.”
Curry said a positive development for gold bulls was the medium to long-term base the yellow metal managed to build in June.
When gold’s chart is correlated with the dollar index and US treasury yields, Curry sees “at least $100 upside” for gold from current levels.