Gold prices gave up early gains Thursday to dip below $1,400 an ounce, as the euro extended losses against the dollaramid worrying debt problems in the euro zone. Frank McGhee, precious metals trader at Integrated Brokerage Services, shared his outlook on the precious metal.
“A number of people have been looking for a major pullback, but I just don’t think the gold market is going to give it to you at this point,” McGhee told CNBC.
“We went from quantitative easing to reconcentrating on the situation in Europe, and as it starts to look like Ireland’s going to need a bailout, it’s going to do nothing but propel gold up higher.”
Meanwhile, silver prices continued rising. The commodity hit a 30-year high earlier this week.
“You have silver a bit overbought and a lot of the pressure was taken off of the volatility and the correction over the past few days,” explained McGhee. “But I think we’ve got higher prices across the board coming up.”
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Scorecard—What He Said:
- McGhee's Previous Appearance on CNBC (Mar. 4, 2008)
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More Market Intelligence:
- Time to Take Profits on Gold: Strategist
- Preiss: Major Gold Correction After Fed Easing
- $1,448 is Next Target But Watch for Consolidation
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CNBC Slideshows:
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CNBC Data Pages:
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Top Gold Miners:
Barrick Gold
AngloGold Ashanti
Newmont Mining
Goldcorp
Kinross Gold
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Disclosures:
No immediate information was available for McGhee or his firm.
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