Spartan Capital Sees Gold Pushing To $1,400 By End Of Summer – Reuters
(Kitco News) - Bullish sentiment continues to build within the gold market with growing expectations that prices could push to $1,400 an ounce sooner rather than later.
The latest firm to add its voice to gold’s optimistic outlook is Spartan Capital Securities. In an interview with Reuters, the firm’s chief market strategist, Peter Cardillo, said that he sees gold hitting $1,400 by the end of the summer if gold can break through long-term resistance at $1,350 an ounce.
Cardillo’s comments come as gold prices continue to benefit as recession fears continue to sweep through financial markets, raising expectations for aggressive monetary policy action from the Federal Reserve.
August gold prices are holding near last week’s more than 3-month high, last trading at $1,338.80 an ounce, up 0.15% on the day.
“With all the problems out there, I think we could work away higher here,” he said. “My position remains that in every portfolio, you should have some allocation into hard assets, especially gold.”
Cardillo added that Friday’s retail sales number for May could play an important role in interest rate expectations moving forward. Markets are expecting that retail sales last month picked up from April’s disappointing report, which showed headline sales data dropping 0.2%.
Consensus forecasts are calling for a 0.7% increase in April, with core sales expected to rise 0.5%.
Heading into Friday’s critical economic report, the CME FedWatch Tool shows that markets continue to see a more than 80% chance of a July rate cut and there are growing expectations for a total of three rate cuts by the end of the year.
“The big problem I think that the market is worried about is: are we headed for a real slowdown in economic growth, possibility even a recession in 2020.