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Gold just hit a 6½-year high, and some technical analysts think the rally is far from over

There’s a golden opportunity in the precious metal right now, and it’s not going away.

That’s what two analysts are saying about gold after it hit its highest level since April 2013 on Monday. U.S.-Iran tensions have given a new kick to a rally that began in the last weeks of 2019. The price of gold was down slightly Tuesday morning.

Piper Sandler chief market technician Craig Johnson thinks gold has another 12% to go. He notes that stocks have stabilized and were rising with gold — an “interesting” trend to note — and that charts of gold point to even more gains.

“I look at this chart of gold and it looks like to us we can trade as high as $1,760,” Johnson said Monday on CNBC’s “Trading Nation.” “I don’t think this trade is over for gold, and I would have a little slice of this in everyone’s portfolio.”

Boris Schlossberg, managing director of FX strategy for BK Asset Management, also points out that gold had been rising before tensions with Iran. He attributes it to the Fed, and believes that a further gold rally will depend on the central bank’s balance sheet.

“Overall, I think it’s a buy-the-dip story for the time being until the Fed starts getting tight,” he said in the same interview.

If investors are looking to play gold, Schlossberg suggests looking at Newmont Mining.

“Newmont Mining just raised their dividend to 2.4%,” he said. “It’s the only gold miner that’s part of the S&P 500. If gold really starts to run, it’s going to be broadly on institutions, so that’s an interesting way to play it.”

Gold has rallied about 5% in the last month.


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