Kitco News -- With gold at a three-week high and headed for its biggest gains since the aftermath of the Brexit vote, one trader is not convinced just yet.
"It looks really strong but there is a lot of resistance at $1,250 ... I'm not buying into this run yet although I am long-term bullish gold, " said Bill Baruch, senior market strategist for Chicago based iiTrader.com. Speaking with Kitco News, Baruch said he is keeping an eye on next week's options expiration which could change gold's direction. So far, gold has climbed 1.7% this week, while the Dow is off 1.4%.
Baruch added that he would not be surprised to see the market retreat a little, but should the metal go above $1,250 an ounce then he thinks the metal could head above $1,300 in the next few months. April Comex gold prices settled the U.S. day session higher at $1.249.7 an ounce, up $3.20 on the day, due to some safe-haven demand amid a shaky U.S. stock market mid-week.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.