Publish date:

Is Gold Rally Sustainable or Will it Lose Its Luster? GSA’s John Doody Comments

Kitco News -- Gold prices ended the U.S. day session near unchanged Thursday, on mild profit taking after scoring a nearly three-month high Wednesday.

Kitco News -- Gold prices ended the U.S. day session near unchanged Thursday, on mild profit taking after scoring a nearly three-month high Wednesday. The question on investors’ minds is whether the yellow metal can take advantage of its safe haven appeal and keep the momentum going. Portfolio manager, John Doody says that gold should be able to stay the course. ‘I think we are going to continue modestly higher – the pressure of further Fed rate increases is off for now,’ says Doody, the founder of the popular Gold Stock Analyst (GSA) newsletter. ‘After a four-plus bear market, the cycle is turning,’ he adds. On the gold stock front, Doody says he likes companies that are benefiting from a lower currency valuation including the Canadian miners, Mexico and Australia. As for the silver miners, Doody says it is very difficult for companies to turn a profit with silver’s current levels. ‘Silver is at $14 and nobody can make any money – until silver gets to $16-$17 dollars, we are not going to see any profits out of these miners,’ he adds. February Comex gold was last down $0.80 at $1,115.00 an ounce. March Comex silver was last down $0.214 at $14.245 an ounce.

TheStreet Recommends