Bloomberg strategist warns: Gold may fall from the high of $6,000 to the support level of $4,000

PANews reported on February 5 that Mike McGlone, Senior Market Strategist at Bloomberg Intelligence, warned that although the price of gold could soar to $6,000, it is more likely to test the support level at $4,000, while silver may fall back to $50.

McGlone pointed out that the recent parabolic rise in gold may indicate that this year could be a market peak, as its valuation has become excessively high compared to commodity indices and inflation levels. He believes that the gold/S&P 500 ratio shows gold still has diversification value, but the bullish momentum in the stock market may put downward pressure on gold prices.

At the same time, he mentioned that the gold-silver ratio has returned to normal, currently at 56.6, and may further correct to $50 in the future. Investors should be alert to potential volatility and correction risks in the precious metals market.