Gold Rallies to Three Month Highs, Mining Stocks Get a Lift

Gold prices and mining stocks rallied Thursday, which TheStreet’s Real Money Contributor Ben Cross said is being driven in part by worries of negative interest rates.
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Gold prices and mining stocks rallied Thursday, which TheStreet’s Real Money Contributor Ben Cross said is being driven in part by worries of negative interest rates and continue central bank stimulus. Gold was helped by a weaker dollar, but Cross points out any dollar strength will put a crimp in the rally. He thinks $1,200 an ounce is optimistic for gold, despite its rally to three month highs. Meantime, TheStreet’s technical analyst Bruce Kamich said technical indicators show the SPDR Gold Shares ETF (GLD) is overbought and due for a correction, yet it keeps going. He says the SPDR Gold Trust potentially could move into the $130 to $140 range. Kamich is also watching stock of mining company Freeport McMoran (FCX), which he said could rally to retest the $10 level.