Gold prices are reaching the peak and running out of steam on this rally, said Charlie Morris of HSBC Global Asset Management.
Gold prices are “merely reflecting [US] dollar weakness,” Morris told CNBC.
“Against other currencies, there is no rally. If you look at [gold prices] against the yen, euro, sterling — you see it as flat as a pancake in the last two to three months.”
Morris said people are buying gold for the wrong reasons.
“[Gold prices] are not going up — it’s only going up in dollar terms because the dollar is falling,” he said.
Morris said the short-term market is overbought. Once the normalization of the world continues, the gold market “just needs to tread water for quite sometime,” he said.
No immediate information was available for Morris or his firm.