Gold Stuck in Consolidation but Long-Term Bullish Case Holds, Says Tanglewood's Bruce

Gold holds onto gains after testing support near $4,000 an ounce. Tanglewood's Macro Investment Strategist Tom Bruce views the market as being in a consolidation phase due to uncertainty over interest rates and inflation. He stays neutral near term yet sees the longer-term outlook as constructive.

With central bank buying having slowed and geopolitical risks easing, gold now responds mainly to traditional drivers such as real rates. Bruce notes the metal successfully defended the $4,000 level and shows no signs of widespread liquidation by investors.

In the near term he expects range-bound trading. A resumption of central bank purchases could quickly return gold to record highs, while even steady Fed rates would remain supportive, he added.