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General Market Commentary
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Precious Metals
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General Market Commentary
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General Precious Metals
'Gold is a hedge against the madness': Price pullbacks are now buying opportunities — Pepperstone
(Kitco News) Gold prices broke a key resistance level last week and now any price pullbacks present a great buying opportunity, according to one market expert, who describes gold as "a hedge against the madness."
“Gold and precious metals have come firmly back on the radar … I feel pullbacks are [a] buying opportunity,” Pepperstone head of research Chris Weston said on Monday.
An important resistance level was tackled last week, which opened up opportunities for gold, noted Weston.
“Have a look at the gold monthly chart and you’ll see the rejection of $1,670 area (in the prior two months) has given way,” he wrote. “The technical set-up is most compelling, where we can choose any time frame and it suggests the balance of probability is for higher prices.”
At the time of writing, June Comex gold futures were trading at $1,743.40, down 0.54% on the day.
Gold has many reasons to rise, Weston highlighted, citing ultra-loose monetary policies, inflation and currency debasement.
“Gold is a hedge against the madness and the experimental actions from the central bank world. It is a hedge against falling real yields, which have partly been driven by rising inflation expectations. It is a hedge against the debasing of fiat currency,” he said.
Technicals also look solid for gold, Weston added, pointing to managed money in the weekly commitments of traders report.