Gold to Trade Like It's 1999? Oppenheimer Says History Is Repeating Itself
Kitco News -- In 1999, the gold market rallied at the start of the year before settling into a range, so is history repeating itself for the metal? According to Ari Wald, head of technical analysis for Oppenheimer & Co., it just might be. 'For the longer term trend, it is indeed reversing higher here, but the message is, tactically, now is not the time to be playing for that,' said Wald in an interview with Kitco News. 'Over the past few weeks, gold (GLD) - Get Report has rallied a lot in a short amount of time, in fact it is about 11 percent above the 200-day moving average. Along with being overbought and testing some resistance at the 2015 peak at $1,300 - it is due for a pause to refresh and with that pause, we can see downside risk, maybe to the March lows of $1,200.' Wald added that he thinks the metal will be range bound for the next few months, but does think pullbacks can provide a buying opportunity. It is important to buy 'the dips' and not the 'rips,' he continued. On Wednesday, gold futures traded modestly lower after Federal Reserve comments raised fresh uncertainty about the near-term course for interest rates. June gold was last down $17.60, or 1.36 percent, at $1,274 an ounce.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.
