[video] Quick Take: Stocks Shaky -- Go For Gold
NEW YORK (TheStreet) -- August has been a rough month for equities, but they're starting Monday with some gains. Gold has also been rallying since July, but has recently started to take a breather.
Mark Newton, chief technical analyst at Greywolf Execution Partners, told TheStreet's Debra Borchardt that gold typically performs from July to October, during India's wedding season.
He added that stocks, while bouncing, still look a little shaky and that gold might be a better alternative. He went on to say that we're in the seasonally weak period for stocks and the seasonally strong period for gold.
With the yellow metal making a breakout last Friday, Newton has a price target of $1,525 an ounce, the support level which gold fell through in April.Yields on the 10-year Treasury are dropping as well. The move could be attributed to weaker-than-expected durable goods orders, which might have some investors thinking the tapering date will be pushed back from September. Newton said that tapering is already somewhat baked into the market, and that bond yields rose towards 3% very rapidly. Now, though, they're just pulling back and cooling down, he concluded. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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