Gold needs China to toughen stance for price rally
(Kitco News) -The China-U.S. trade war could be the key to another gold price “explosion”, says Chen Lin, founder of ChenPicks.com. “If gold can hold up above $1,450 [an ounce] to $1,480, this could be, if should look at the charts, a good base for the next leg-up,” Lin told Kitco News on the sidelines of the Precious Metals Summit in Beaver Creek. “If you look at the calendar, this thing could explode in the next few weeks.”
Gold has experienced a pullback in the last week on the back of a seemingly softer stance from China regarding the trade wars, but Lin said that the Chinese strategy is to stall out the negotiations until the 2020 presidential elections.
“China is a little bit softer in tone, but what I see is that on the key issues, China is very unlikely to yield,” he said.
On silver, Lin said critical support lies in the $17.50 an ounce level.
“Every breakout always retests the breakout point, which is about the $17.50 area. We’re very close to it. Sometimes I’m thinking maybe I should buy it just to get the position because it could explode to the upside,” he said.