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.com

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Chris Vermeulen is founder of the popular trading sites www.thegoldandoilguy.com and www.ActiveTradingPartners.com. There he shares his highly successful, low-risk trading method. Since 2001, Chris has been a leader in teaching others to skillfully trade in gold, silver, oil and stocks in both bull and bear markets.

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