Gold prices have been making a major move higher since May. As our subscribers know, our Macro analyst team went bullish on it before its move higher earlier this year.

And while being long gold has become somewhat of a consensus position, Hedgeye CEO Keith McCullough explains that current economic conditions give gold “plenty of opportunity to go higher.”

“Gold trades with real interest rates, so you’ve just got to get the rate of change of interest rates right,” McCullough explains in the clip above from the August 5th edition of The Macro Show.

“If you go back to 2011, you had Bernanke twisting the curve, bond yields falling, and the U.S. dollar being devalued to a 40-year low – now that gave you gold’s all-time highs.

So if you believe, as I believe, that the only way out is for the Fed to cut interest rates by 50 basis points at a time, eventually the dollar is going to have to go down again.

So there’s plenty of opportunity for gold to go higher.”

Watch the full clip above for more.

McCullough: Why Gold Can Go Even Higher - early look