Gold To Trade Like It's 1999? Oppenheimer Says History is Repeating Itself

In 1999, the gold market rallied at the start of the year before settling into a range, so is history repeating itself for the metal? According to Ari Wald, head of technical analysis for Oppenheimer & Co., it just might be. ‘For the longer term trend, it is indeed reversing higher here, but the message is, tactically, now is not the time to be playing for that,’ said Wald in an interview with Kitco News. ‘Over the past few weeks, gold has rallied a lot in a short amount of time, in fact it is about 11% above the 200-day moving average. Along with being overbought and testing some resistance at the 2015 peak at $1,300 – it is due for a pause to refresh and with that pause, we can see downside risk, maybe to the March lows of $1,200.’ Wald added that he thinks the metal will be range bound for the next few months, but does think pullbacks can provide a buying opportunity. It is important to buy ‘the dips’ and not the ‘rips,’ he continued. On Wednesday, gold futures traded modestly lower after Federal Reserve comments raised fresh uncertainty about the near-term course for interest rates. June gold was last down $17.60, or 1.36%, at $1,274 an ounce. (show less)

In 1999, the gold market rallied at the start of the year before settling into a range, so is history repeating itself for the metal? According to Ari Wald, head of technical analysis for Oppenheimer & Co., it just might be. ‘For the longer term trend, it is indeed reversing higher here, but the message is, tactically, now is not the time to be playing for that,’ said Wald in an interview with Kitco News. ‘Over the past few weeks, gold has rallied a lot in a ... (read more)

Kitco NEWS

Kitco NEWS
The Kitco News team speaks to analysts and experts on the frontlines of the market to get the most up-to-date news on the economy. The show offers a well-rounded, timely view on big market moves and any major headlines that may affect financial assets. Coined – no pun intended – as the number one source of precious metals news, Kitco News is the leading provider of up-to-date price action in the precious metals space.

Disclaimer: The content on this website, including, without limitation, news, videos, interviews and commentaries, is provided by Kitco Metals Inc. ("Kitco") for informational purposes only and is not intended as any form of advice, whether legal, accounting, investment, financial or tax advice. Therefore, it cannot be relied upon as such. Should you require such advice, contact a licensed professional. The content provided herein is provided on an "as is" basis without any warranty of any kind, whether express or implied and your use of the information provided in said content is entirely at your own risk. In no event will Kitco be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content on this website.