Gold Prices Could See One More Plunge

KITCO NEWS -- A slew of Fed speeches and economic data is on deck this week. Gold seems to be having a tough start, but could it be setting itself up for higher prices? How will the metal perform during this busy data week? Todd "Bubba" Horwitz of bubbatrading.com said that he expects the metal to still have one more leg down, "as a trader I am waiting for one more pullback to buy a lot of gold," he told Kitco Newson Tuesday. "I want to take a big position in gold but I want to buy it on the weakness," he said, adding that he is confident the gold market is close to ending its bear market. Horwitz added that he is looking for gold to hold $1,225 an ounce and says a new "war on cash," is helping to support gold prices. Gold prices were ending the U.S. session slightly down Tuesday, pressured by a stronger U.S. dollar index that was supported by hawkish comments from Federal Reserve Chairwoman Janet Yellen. Meanwhile, silver prices were slightly higher and scored another three-month high. April Comex gold was last down $1.10 an ounce at $1,224.70. March Comex silver was last up $0.049 at $17.87 an ounce.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.