Gold's Going Back To Basics, Just Wait & See - RBc's George Gero

When it comes to future gold prices, it's not so much about the U.S. dollar but more about inflation, says RBC Wealth Management's George Gero. A veteran precious metals strategist, he tells Kitco News that he expects inflation to move higher this year. 'Inflation definitely looks like it's coming along and will be part of the economic story going forward,' he tells Daniela Cambone Tuesday. Gold futures fell under pressure Tuesday after hitting a two-month high, settling the day 0.39% lower at $1,210.80 an ounce. Meanwhile, the U.S. dollar index last traded 0.44% higher at 100.36. However, Gero says he's not worried of a rising U.S. dollar environment, adding that he's not paying too much attention to gold's inverse relationship to the greenback. 'Don't count out the dollar move as a negative for gold because I remember [.] years ago we had higher interest rates, a higher dollar and gold was moving higher because of inflation.' According to Gero, gold's most recent pullback is likely driven by options expiration scheduled on Jan. 26. 'I think later on this year, probably shortly after options expiration, gold will go back to basics.'