Gold: It’s Time to Buy
After hitting major support levels and being widely mocked by pundits, gold and the companies that mine it are at long last finally attractive.
By Michael Kahn
Nov. 19, 2014 4:31 p.m. ET
Over the years, I have made some bold calls on gold and often the pushback from those not sharing my views has been rather vigorous, to put it mildly. It’s time to once again risk the wrath of the haters and say that gold finally looks ready for a recovery.
No, I am not saying it is heading back up to its 2011 peak above $1,900 an ounce, at least not for the foreseeable future (it traded at $1,195 Wednesday afternoon). However, I do think in the long term we will see an important bull market return.
For the here and now, a potential reversion back to its 200-day moving average in the $1,250 area would indeed be a good first step on the road to serious recovery. If and when it gets there, we will likely see the chart set up for a run back to $1,500. We’ll look at that chart below.