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