Gold Settings Its Sights on $1,900

Photo by Wikimedia.orgCC BY | Photoshopped

The yellow metal is up about 20% in the last year, but at least one analyst says that it will soon go much higher. Here’s why he thinks it may set a new record.

In a recent interview with Kitco, Peter Reznicek, head trader at ShadowTrader, spoke about the extremely bullish signals that gold has been sending over the past six months. The metal is currently riding on six-year highs, oscillating in a narrow trading range above last year’s high of $1,553.

While the jump of roughly 20% in gold prices over the past year  has enticed many investors, Reznicek says that the price spike is merely the beginning of something very exciting in the market. The veteran trader explained that he favors long-term charts and, when assessing gold, looks as far back as two decades ago to get a better idea of where the metal is headed.

Observing the market from this perspective, Reznicek found it clear that last summer marked a breakout from a prolonged range bound pattern. While some view gold’s retracement from the $1,600 level as a sign that the metal might be moving too fast, Reznicek isn’t the least bit concerned and assures investors that gold is on a clear upwards trajectory.

As Reznicek points out, gold prices soared around mid-2019 before moving sideways over the next couple of months, which is a bullish sign in and of itself. Gold’s strong positioning above last year’s highs suggests that the metal is enjoying excellent support around current levels and could be one or two drivers away from a major breakout.

Reznicek has little doubt that gold bottomed out ahead of the summer price jump and that, from a longer-term perspective, the metal is preparing to shoot far above current levels. Having been bullish on gold for some time, Reznicek unequivocally advised investors that long gold is the position they want to be in right now.

In terms of price levels, Reznicek pointed to $1,613 as the next key resistance level that gold shouldn’t have a hard time breaching. Over a slightly longer period, Reznicek said that gold investors should keep an eye out for the all-time high of $1,900 as a very reachable level, while leaving open the possibility that the metal could end up even higher in the near future. Reznicek’s prediction echoes that of several other guests on Kitco’s show, many of whom are predicting that gold will indeed recapture levels last seen in 2011 and possibly leapfrog them.

Speaking about short-term drivers, Reznicek singled out the coronavirus as a potentially important tailwind for gold. Although the trader feels that the outbreak hasn’t influenced the gold market to a significant degree thus far, he noted that any significant market disruption related to the virus would definitely play into gold’s favor.

Interest Rates Just Dropped From 20% To Zero – What Happens From Here

Posted on

THE FEDERAL RESERVE HAS 18 TRILLION REASONS WHY THEY CAN’T SEND INTEREST RATES HIGHER. WHAT HAPPENS TO OUR SAVINGS WHEN THE BUBBLE FINALLY BURSTS?

rob with fountain pen Interest Rates Just Dropped from 20% to Zero – What Happens From Here?

L. Todd Wood

For the past several decades, bond yields have grinded lower and lower, now reaching effectively 0%. Yet despite such a decline, there has been a lot of talk in the financial press of a growing bubble in the market.

[Read more…]

Is Europe’s $1.28 Trillion Economic Plan A Recipe For Disaster

Posted on

BY FOLLOWING THE FEDERAL RESERVE’S LEAD AND FLOODING THE ECONOMY WITH MONEY, HAS THE EUROPEAN CENTRAL BANK AVERTED ITS “DAY OF RECKONING”… OR DOUSED MORE FUEL ONTO THE FIRE?

mario draghi ecb qe Is Europes $1.28 trillion economic plan a recipe for disaster?

From Filip Karinja

Here we go again – only this time, in Europe.

This past Thursday, Mario Draghi, president of the European Central Bank (ECB), announced that the ECB will launch its own Quantitative Easing program in March, purchasing €60 billion ($67 billion) in government debt each month. [Read more…]

This Will Not End Well

Posted on

WITH THE U.S. GOVERNMENT PULLING THESE TWO CRITICAL SAFETY NETS FOR THE ECONOMY, THE WRITING ON THE WALL FOR YET ANOTHER CRASH SEEMS FAR TOO APPARENT.

this will not end well This will not end well!

From L. Todd Wood

I was a fairly new employee on Wall Street, a decade and a half ago. I had only been trading about five years but I clearly remember when Sandy Weill, the architect of Citigroup, walked in my office to rally the troops during a management visit. Jamie Dimon, the currency CEO of JP Morgan Chase, dutifully followed behind with a clipboard, taking notes from the master.

[Read more…]

Jim Cramer Explains Why You Need Gold As Insurance

Posted on

BEST-SELLING AUTHOR STATES THE SIMPLE CASE FOR WHY EVERY AMERICAN NEEDS SOME GOLD TO PROTECT THEIR SAVINGS.

jim cramer gold insurance Video: Jim Cramer Explains Why You Need Gold as Insurance

Does your portfolio have an insurance policy?

If you’ve never considered having an insurance policy for your stocks, Jim Cramer is encouraging you to think again. According to the best-selling author and host of the CNBC show, Mad Money, “everyone should have one.” After all, “you won’t own a home without home owner’s insurance; you won’t own a car without car insurance.” And that’s exactly why your portfolio also needs insurance – something to tide you over when things threaten to go bad.

[Read more…]

Could Low Gas Prices Really Pose This Threat To Your Savings

IF YOU THOUGHT THERE COULD BE NOTHING WRONG WITH PLUMMETING GAS, YOU MAY BE SURPRISED BY HOW MUCH YOUR SAVINGS ARE TIED TO THE SUCCESS (AND FAILURE) OF BIG OIL.

low gas prices Could Low Gas Prices Really Pose This Threat to Your Savings?

From Rachel Mills

After November’s midterm elections, we had been waiting with bated breath for gas prices to rise again. After all, they usually seem to dip and surge around elections. Or maybe that is only how it seems some years. Memory can be so selective.

But this time the surge in prices following the election hasn’t happened. We suggested to readers, tongue-in-cheek, to fill up their tanks on the way to the polls in anticipation for that post-election upswing, but instead, prices have kept falling. And so, instead of behind-the-scenes forces struggling to manipulate prices downwards for the benefit of the political class, it seems instead that something else is going on. [Read more…]

Tanking Ruble Stings Russian Consumers

AS THE WORLD IS MOVING INEXORABLY AWAY FROM THE DOLLAR, COULD WE ONE DAY BECOME WITNESS TO A SIMILAR SCENARIO HERE IN AMERICA?

Posted on

Moscow-Retail-StoreFearing hyperinflation, Russian consumers aren’t taking any chances so they hurried into stores Wednesday to buy big ticket items before prices were forced further up by the rapidly plunging value of the ruble.

This week the Russian ruble has hit a record low of 80.10 against the dollar on Tuesday, raising fears of bank runs. The currency lost 19% of its value in just the past three days amid the worst financial crisis the country has seen since the late 1990s. Cars and home appliances were flying off the shelves – in some cases in record numbers, according to the Associated Press.

[Read more…]