CNBC: Gold Investors Have Been Waiting a Long Time for This Breakout Moment and it is Happening
Article by Maggie Fitzgerald in CNBC financial
Investors are piling into gold, sending the precious metal to a six-year high on Tuesday, and analysts think the commodity has established a “base” to go even higher.
Gold futures hit a high of $1,442.9 on Tuesday, its highest level since May 2013 when it traded as high as $1,444.9. The precious metal is up more than 8% so far this month, on pace for its best monthly performance since 2016.
“Bigger picture though, given the magnitude of the base which has taken six years to form, we suspect we could even see a retest of the $1921 record high,” David Sneddon, global head of technical analysis at Credit Suisse, said in a note to clients on Monday.
Sneddon said gold has established a multi-year base that could provide the platform for a “significant and long-lasting rally” for the precious metal.
Gold is up more than 9% for the quarter and is on track for its biggest quarterly gain since the first-quarter of 2016, when it rose 16.54%.
Morgan Stanley’s commodity strategist Susan Bates said gold is the firm’s No. 1 commodity pick.
“Morgan Stanley’s forecasts of falling real rates and a bearish US dollar outlook, against an uncertain macroeconomic outlook, should lend significant upside to gold’s price through second half of 2019 and into the first half of 2020,” said Bates in a note on Monday.
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