Bloomberg strategist warns: Gold may fall back from the $6,000 high to the $4,000 support level, signaling potential volatility in the precious metals market amid changing economic conditions.

PANews February 5 News, Bloomberg Intelligence Senior Market Strategist Mike McGlone warns that although gold prices may surge to $6,000, it is more likely to fall back to the $4,000 support level, while silver could retreat to $50. McGlone points out that the recent parabolic rise in gold may indicate that this year will be a peak year for the market, as its valuation has become excessively high compared to the commodity index and inflation levels. He believes that the gold/S&P 500 ratio still shows diversification value for gold, but the bullish momentum in the stock market could put downward pressure on gold prices. At the same time, he mentions that the gold-silver ratio has returned to normal, currently at 56.6, and may further decline to $50 in the future. Investors should be alert to potential volatility and pullback risks in the precious metals market.