Gold prices have dropped nearly one percent over the past week—and the decline could continue, said Ashraf Laidi, chief currency strategist at CMC Markets. There’s more downside for the precious metal seen ahead, he told CNBC.
“The easy answer for why gold is expected to come down more is partially because of the dollar’s upside potential, as the Fed reduced liquidity without actually having to raise rates,” Laidi said.
Last week, gold prices hit an all-time high measured against the euro. Meanwhile, Laidi said he expects the U.S. dollar-friendly landscape to continue, further pressuring the euro.
“We know the U.S. dollar is doing very well against all of these two,” Laidi said, referring to the euro and gold. “We know that gold hit an all time high against the euro before it started to come down, so that really ensures our call for lower gold in a dollar turn.”
Laidi said gold’s price remains vulnerable to $1,020, followed by $980.
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No immediate information was available for Laidi or his firm.