(Kitco News) - Gold prices may have bottomed, and it’s only a matter of time before the next leg-up in prices take effect, this according to Gary Wagner, editor of TheGoldForecast.com.
“This is an extremely, extremely good year for the price of gold,” Wagner told Kitco News. “That being said, I believe right now we have been forming a base, roughly around $1,450.”
Wagner noted that gold prices could rally another 15% from current levels.
“I’m looking for $1,650 to about $1,700 or $1,690 as the next conclusion of a rally that has really begun over the last couple of weeks,” he said.
An interesting phenomenon that we may see is a positive correlation between gold prices and equities if the Federal Reserve takes an even more dovish stance.
“When the Federal Reserve steps in and either cuts interest rates or has an accommodative monetary policy because in that particular instance, we will see, as a net result of that both equities and gold running higher based upon Fed action,” he said.