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.