Skip to main content

How Much Higher Can Gold Prices Go?

Publish date:
Video Duration:

Gold prices have finally seen some reprise during Tuesday’s trading session, but the road to further upside may be a bumpy one, this according to Todd “Bubba” Horwitz, chief market strategist of

“Prices may hold for a while, but they still don’t look all that great. Remember, we’re still 20% from our all-time highs in gold and certainly 90% from our all-time highs in silver,” Horwitz said. “This is just a little bit of a squeeze right now, but until it really lasts and show me it can go, I’m going to hold tight.”

Spot gold prices moved almost 5% higher on Tuesday, with silver moving $1.03 an ounce higher to close at $14.30 an ounce.

Earlier in the year, Horwitz has called for silver prices to continue its downward trajectory and cause the gold-silver ratio to widen; it has since reached historic highs, hitting 114 on Tuesday.

Equities also rallied on the day, with the S&P 500 up 8.5%.

“I am long gold. I’m not real thrilled with this gigantic move up, typically in my eyes, rallies aren’t born on a straight v-shaped bottom, and I think there’s probably some work to do, either consolidating or coming down a little bit,” he said.

Tuesday also saw a discrepancy between physical and paper gold prices, which Horwitz attributed to commercial buyers propping up the physical market.

“I think that a lot of the big commercials are actually shorting paper and buying the physical, and that’s why you’re seeing the pressure on futures gold versus the physical,” he said.

Catch up on the Latest Videos on TheStreet!

Retirement Daily: How to Plan for Retirement During the Coronavirus Pandemic

Related Videos