Make Kitco Your Homepage

Gold prices have formed a bottom; expect the next rally to target $1,900

Kitco News

(Kitco News) - Gold prices have been consolidating for a few months already, and the next breakout could take prices to 2011 highs of $1,923, this according to Peter Reznicek, head trader at shadowtrader.net.

“For me, the target just has to be the prior all-time high in 2011. I’m just looking at the $1,923 level, that would be fine, and then reassess the situation from there,” Reznicek told Kitco News.

Gold prices have been trading between $1,500 and $1,600 for quite some time, but Reznicek said that this consolidating movement is a very bullish sign.

“I like gold, I’m a long-term bull, I have been a long-term bull for quite some time. The way that I like to look at gold is simply to keep the technicals on as long of a timeframe as possible, so for me, I always go out to the monthly and I trade gold contracts, ETFs, and options as well according to those monthlies,” he said.

He added that since 2000, the market has been in a long-term uptrend that has just developed a bottom.

“This bottom on the monthly has taken years to develop and we’ve only started to see the breakout from that in about mid-2019 and that’s the rally that’s underway now,” Reznicek said.

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.