(Kitco News) - Technicals point to more bullish momentum for gold, after an escalation of the trade wars pushed the yellow metal 2% higher on Friday, said Todd Gordon, founder of TradingAnalysis.com.
"Upside target [is] $1,576 [an ounce for gold] I think in this move, and then if this thing really gets going, [the trend line] would point you to $1,708," Gordon told Kitco News.
The escalation of the trade wars with China on Friday, following Trump's decision to increase tariffs, may put a plug on equities, he noted.
"I think it's time to get more defensive here. It's summer and we've got to keep that in mind. This is the last week in August, yes, there's a lot going on in the news cycle, but you've got to kind of put things through a filter here. If this was happening in March' we'd have to be a lot more engaged, but this is summer, let's not get too ahead of our skis right now," he said.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.