Gold price at 'steep discount' vs. crude oil: $2,000 gold will be breached

Gold last traded at $1,875 an ounce. Silver at $27.95 an ounce.

NEWS SUMMARY: Precious metal prices eased back Friday on mild profit-taking and a firmer dollar. U.S. stocks traded mixed as investors tried to decide if last month's 13-year inflation high will last or is "transitory".

BLOOMBERG/KITCO---Gold is re-starting its bull rally, with the precious metal currently trading at a 'steep discount' to crude oil, according to Bloomberg Intelligence.

The $2,000 gold price target is currently a resistance level, but it will be breached due to the U.S. employment situation, said Bloomberg Intelligence senior commodity strategist Mike McGlone.

'Gold above $2,000, silver [at] $30 may not wait for June unemployment. Weaker-than-consensus April and May U.S. unemployment reports support our key takeaway that gold and silver are ripe to resume their bull markets,' McGlone said in a note. 'Things may never be the same due to more flexible work schedules. About $2,000 is key gold resistance, which we expect to eventually be breached.'

From a technical perspective, gold's current price levels are 'at an unsustainably steep discount to its more enduring upward trajectory vs. crude oil.' The gold-to-crude ratio will be favoring the precious metal, McGlone pointed out."