Should Gold Be Higher?
(Kitco News) - With gold hitting a seven-week high last Wednesday, many investors are hoping to see strong momentum carry over into this week.
But one trader is also warning that while the gold market is ready for a breakout, investors still need to be patient. Bill Baruch, president of Blue Line Futures, said on Monday said that it is only a matter of time before gold breaks its current trading range.
Gold prices are moderately up and trading near their session highs in late-morning dealings Monday. As a sign of the overall technical bullish momentum in the marketplace, traders stepped in at the start of the week and bought early price weakness. June gold was last up $4.00 an ounce at $1,352.00.
But as jitters grow over Syria and Russia and with a potential trade war with China still in the picture, many investors were expecting gold to rally to $1,400 an ounce.
"I believe it is going to happen and in due time," said Baruch in an interview with Kitco News.
"I think this breakout is coming; it's going to take a while. There are bears defending this and there are a lot of bulls already in the market," Baruch said, noting he expects gold to reach $1,420-$1,430 before August.
Baruch recognized that given the geopolitical tensions, many investors might be scratching their heads as to why gold is not moving faster.
"The dollar has not made its next leg down," Baruch explained as the main hurdle stopping gold from breaking out of the current range.