Four reasons why gold is dead money into year-end

Gold prices have gained more than 10 percent this year on U.S. dollar weakness and increased global geopolitical tensions. Despite the move, Phil Streible, senior market strategist at RJO Futures, says the rest of the year could be turbulent for the yellow metal. And he has four reasons why.

• Streible has rising expectations for interest rate hikes beginning in December, with three more in 2018. This could make the U.S. dollar more attractive to foreign investors, boosting the greenback, thus depressing gold prices.

• Declining tensions between the U.S. and North Korea has subdued safe haven demand from investors, he said, as it appears a new safe haven trade could be found in oil on the heels of a new conflict with Iran.

• He pointed out that gold imports out of India and China have weakened in the past few months.

• Adding to his cautious outlook is a dip he's observed in the gold-silver ratio, indicating to him that investors are finding more appeal in different metals like silver, platinum and palladium.

The bottom line? He thinks gold could be dead money going into year-end. Gold traded lower Friday, settling at $1,270.20 per ounce.


Trades to Watch

Trader Bios


Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

Read more