Gold Heading to $1,400

Three Charts That Show Gold is Going to $1,400

We just posted a story of how gold is about to go ballistic.
Well, we all know gold just had its worst week in over two months, but one technician says the precious metal is headed for a breakout.

Gold is often used as a hedge against inflation as well as a supplement to an already solid retirement strategy. However, Carter Worth, Cornerstone Macro’s head of technical analysis, argued that there is no reputable relationship between the two. That’s strange statement, but read on.

KEY TAKEAWAYS: 

  • Gold has been on decline, worst in over two months
  • It’s ambiguous what [gold’s] role is as a hedge against inflation, but the thought that it has to go down when rates are going up is not established in any way
  • 10-year chart of gold, Worth noted that there are several bullish technical patterns forming on the chart.

Finally, some background is appropriate to first back up his claims and secondly, to show that gold is due for a bullish year in 2018.

It’s ambiguous what [gold’s] role is as a hedge against inflation, but the thought that it has to go down when rates are going up is not established in any way, Worth said this week on CNBC’s “Futures Now.”

In fact, we know that since December, rates have moved on the 10-year from 2.35 percent to 2.95 percent, and gold is up about 10 percent, Worth added.

I think [gold] will be at $1,400 by the end of the year, Worth added.

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