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Gold's Next Stop: $1,275

Commentaries & Views

Since breaking above $1240, gold has gone back into churning mode. The fact that gold continues to make higher lows and is holding its support levels, we expect it to break out to the upside.

The next level we expect to see is $1,275 as gold looks prepared to go into an extended rally. All signs point to gold breaking out, which could create an extended bull market. The metals in general gave held up well through the turbulence of equities and interest rates.

Quietly, gold is being bought on every dip; the shorts are getting nervous. Our expectations are simple -- the next push through $1,240 will give gold a quick run to $1,275 as the shorts get squeezed. This could be the birth of a long-term bull market.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.