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Gold Has The Potential To Hit $1,200/oz: RBC Capital Markets
Gold’s rally so far this year has the potential to move to the metal back up to $1,200, but it remains in an overall downtrend, notes one analyst. “The trend on gold tends to trade in trends that can last years, and is currently in a bearish trend that started four years ago, and is now approaching some long-term support around $1000 where it may level off for a few years in a bottoming range,” said Bob Dickey, technical analyst for RBC Capital Markets, in a research note Monday. “The current bounce has the potential to reach the $1150 to $1200 area, but that would likely be another short-term peak within the overall downtrend. A true long-term buy point for gold could still be years away.” After nearing a three-month high Monday, April comex gold futures settled 1% higher on the day at $1,128 an ounce. Dickey also commented on weaker oil prices, which have been weighing on commodities as a whole. “A final low point for oil is not yet apparent, but it has found some near-term support at the 30 level and could now trade in about a 30-40 range for the next several months,” he said. “After such a big decline, a longer bottoming period is likely, so there may be no urgency to buy oil-related investments for several months. We would like to see the 30 level be tested and hold in order to better determine that a bottom has been reached.”
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