Gold is being 'cleansed' now, but $2,300 is still in the cards - Bill Baruch
(Kitco News) - As gold nears the $1,800 an ounce level, now would be a good time to slowly build a long position towards $2,300, which is still “in the cards” for 2021, said Bill Baruch, president of Blue Line Futures.
“Ultimately, we’re starting to see this selling come in as the managed money, net long position, fell by nearly 60% from its peak in August, and that happened over the last couple of months, and really we saw some selling here through the last few weeks. That means the sellers have already started to sell. This is the washout,” Baruch said.
Long-term, fundamentals for gold haven’t changed.
“I think $2,300 is ultimately in the cards. It may not be something that happens very quickly at the start of the year. If we had held $1,855, $2,000 would have been regained quickly. The fact that we’ve now gone below $1,855 I think to predict the timeline of seeing something like $2,300 or move back above $2,000, we really need to see how this damage is repaired,” he said.