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What's the real gold price?

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Gold prices have finally seen some reprise during Tuesday’s trading session, but the road to further upside may be a bumpy one, this according to Todd “Bubba” Horwitz, chief market strategist of

“Prices may hold for a while, but they still don’t look all that great. Remember, we’re still 20% from our all-time highs in gold and certainly 90% from our all-time highs in silver,” Horwitz said. “This is just a little bit of a squeeze right now, but until it really lasts and show me it can go, I’m going to hold tight.”

Spot gold prices moved almost 5% higher on Tuesday, with silver moving $1.03 an ounce higher to close at $14.30 an ounce.

Earlier in the year, Horwitz has called for silver prices to continue its downward trajectory and cause the gold-silver ratio to widen; it has since reached historic highs, hitting 114 on Tuesday.

Equities also rallied on the day, with the S&P 500 up 8.5%.

“I am long gold. I’m not real thrilled with this gigantic move up, typically in my eyes, rallies aren’t born on a straight v-shaped bottom, and I think there’s probably some work to do, either consolidating or coming down a little bit,” he said.

Tuesday also saw a discrepancy between physical and paper gold prices, which Horwitz attributed to commercial buyers propping up the physical market.

“I think that a lot of the big commercials are actually shorting paper and buying the physical, and that’s why you’re seeing the pressure on futures gold versus the physical,” he 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.