Gold's Next Stop: $1,275
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.