Gold just hit its highest level since election night, and some see more
upside ahead for the precious metal.
Gold experienced “a textbook breakout from a symmetrical triangle or
wedge,” Rich Ross, technical analyst with Evercore ISI, said Tuesday on
CNBC’s “Power Lunch.”
“That’s quite bullish,” Ross added.
He also pointed out that gold’s 50-day moving average has broken above its
200-day moving average, which is commonly seen as a sign of accelerating
momentum.
Meanwhile, on a longer-term chart of gold, Ross notes a “reverse
head-and-shoulders bottom,” which is made up of a low, a lower low, and then
a higher low. Technical analysts tend to see this as a bullish indicator.
The pattern’s predictive potential is further bolstered by the fact that
the lower low came in December, which is also where gold found a bottom two
years ago.
That’s some “nice bullish symmetry,” Ross said. “So in the short term, I
like gold to move higher.”
Gold prices on Tuesday rose as high as $1,298.80 per troy ounce, eclipsing
by about a dollar the prior 2017 highs seen in April. The commodity has been
spurred by dropping long-term bond yields and a sinking U.S. currency value.
Matt Maley, equity strategist with Miller Tabak, also sees constructive
signs on the gold charts.
He does warn that “we have to be a little careful, because we’ve made a
series of higher highs and higher lows, and are now bumping up against April
highs, so that could be a double top.”
“Sentiment and positioning hasn’t gotten extreme yet,” Maley added Tuesday
on CNBC’s “Power Lunch.”
Net long positions among speculators are “nowhere near where they were
last summer,” according to CFTC data, which could be seen as a sign that
there is room for more investors to turn bullish.
“We’ve got a lot more room to run here,” Maley concluded. “I think $1,375
is a good target here.”
That would imply a 6 percent rise from Tuesday’s highs.
Gold Prices (LBMA AM)
09 Jun: USD 1,274.25, GBP 1,001.31 & EUR 1,139.18 per ounce
08 Jun: USD 1,284.80, GBP 992.12 & EUR 1,142.70 per ounce
07 Jun: USD 1,292.70, GBP 1,001.07 & EUR 1,146.62 per ounce
06 Jun: USD 1,287.85, GBP 997.31 & EUR 1,144.77 per ounce
05 Jun: USD 1,280.70, GBP 992.41 & EUR 1,136.88 per ounce
02 Jun: USD 1,260.95, GBP 980.39 & EUR 1,123.88 per ounce
01 Jun: USD 1,266.15, GBP 984.81 & EUR 1,128.01 per ounce
Silver Prices (LBMA)
09 Jun: USD 17.35, GBP 13.60 & EUR 15.52 per ounce
08 Jun: USD 17.60, GBP 13.60 & EUR 15.67 per ounce
07 Jun: USD 17.60, GBP 13.64 & EUR 15.71 per ounce
06 Jun: USD 17.56, GBP 13.61 & EUR 15.62 per ounce
05 Jun: USD 17.52, GBP 13.58 & EUR 15.59 per ounce
02 Jun: USD 17.19, GBP 13.37 & EUR 15.33 per ounce
01 Jun: USD 17.13, GBP 13.33 & EUR 15.26 per ounce
