Gold Price Hits $1,349.80 -- What's Next?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold exploded on Tuesday along with copper. In the overnight session, gold has achieved our $1,350 target by making a high at $1,349.80, which is the same as $1,350. The question now is: What’s next?
The rally in gold should continue and depending what comes out today in the Fed minutes, it could break out again. Our next target is $1,400. We expect the new bull market in gold to continue. However, we don’t expect a straight line up and look at yesterday and today as a possible blow-off to the upside.
It would be no surprise to see some selling pressure in gold the next few days and that would be very healthy for the market. In blow-off conditions -- heavy volume and parabolic prices -- those conditions must be relieved. This can happen one of two ways -- a sell-off or consolidation. We are bullish but expect gold to slow down here for a period of time.