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Gold To Reach $1300 Soon? This Analyst Thinks So

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Gold To Reach $1300 Soon? This Analyst Thinks So

Gold has bounced back significantly after making lows of nearly $1,150 on March 17, rising five days consecutively. MacNeil Curry, analyst at Bank of America Merrill Lynch, feels this is only the start, and gold can target levels above $1,300. Curry was on CNBC Tuesday to explain why he is bullish on gold right now.

Rally Drivers

"First and foremost we have seen a pretty decent break, so when you say rates are headed lower and the dollar is likely to remain in a correcting sequence in general, gold should rally in that environment and price action says that," Curry said.

Related Link: The Way Gold Prices Are Calculated Just Changed Forever

"We have really, since November of last year, been in a pretty sizeable corrective phase. Within that corrective phase, we are looking for a move back up to the highs of $1307, but also remember, gold has been on its own really since November of last year."

He continued, "If you go back and look, gold made its lows back in November. It went from $1,132 up to $1,307. And throughout that time, the dollar index actually rose from about 87.5 to almost 95.

"So, I think the big thing here is that we are going to see continued breakdown in the correlation, negative correlation, between gold and the dollar over the course of next couple of weeks. And if you look at the price actions, it says gold should probably resume higher."

Levels To Watch

Curry was asked the important numbers that investors should look at between where gold is trading now to his target of above $1,300. He replied, "I think first and foremost the 200-day moving average at about $1,238 has been a bit of a pivot. And then on the downside, the big support is the March 17 low at $1,152. We shouldn't trade back below there," Curry concluded.

Posted-In: CNBC Gold MacNeil CurryCommodities Markets Media Best of Benzinga

 

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