Bill Gross: Gold Will Thrive in 'Ring of Fire'
That is quite a statement coming from a "mainstream" investment firm. Wall Street's usual reaction to gold is that it is a barbarous relic whose only use is in jewelry and that no sane investor should put any money into it, even paper gold instruments such as gold ETFs like the SPDR Gold Shares (GLD) and others.
After Bill Gross' bullish words, gold prices were trading a seven-month high on Thursday before falling Friday to finish the week at about $1,776.00 an ounce.
From a technical analysis point of view gold, silver and gold miners have been holding value at key resistance levels. While we could see a 3%-to-5% pullback before they break out and start the next rally overall the outlook for precious metals remains very strong and I put a $2,400 per ounce on gold for 2013. My daily analysis and trade ideas are available at www.TheGoldAndOilGuy.comThis article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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