Gold’s Bottom In Sight As Commodities Hit Multi-Year Lows - ‘Bubba’ Horwitz

As gold prices stabilize after Monday’s selloff, Todd ‘Bubba’ Horwitz tells Kitco News the metal may be near its bottom. Commenting on the $50 drop in gold prices yesterday, Bubba said it was simply a ‘blowoff to the downside’ as a seller came into the market and dropped 27,000 contracts within 10 minutes. “That, to me, calls for a blow-off bottom,” he said, adding that shortly after that the metal rallied back up about $30. “I think that’s a great sign that the bottom is possibly near, if not in already,” he explained. Kitco’s last spot gold price was up $8.10, at $1,105.80 an ounce, as of 12:27pm EDT. Bubba argued that although this could be considered a 'dead cat bounce', he is optimistic for the metal. "Everything we know that could drive the price of gold lower is basically priced into the market,” he said. “I think this is a great spot [for gold] as a hard asset that people should own,” he added. As commodity indices hit multi-year lows, with Bloomberg’s Commodity Index at levels last seen in 2002, Bubba said this may give the Fed another reason to stall on rate hikes. “They are looking for every reason not to raise rates because they’re not going to raise them,” he said, adding that he doesn’t expect a move until at least 2016. According to Bubba, the Fed missed its opportunity in 2013, and are now “too busy day trading the market.” Kitco News, July 21, 2015. (show less)

As gold prices stabilize after Monday’s selloff, Todd ‘Bubba’ Horwitz tells Kitco News the metal may be near its bottom. Commenting on the $50 drop in gold prices yesterday, Bubba said it was simply a ‘blowoff to the downside’ as a seller came into the market and dropped 27,000 contracts within 10 minutes. “That, to me, calls for a blow-off bottom,” he said, adding that shortly after that the metal rallied back up about $30. “I think that’s a great sign that the ... (read more)

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