Roubini Could Be Right, Gold Could Hit $1,000/oz
New York (Nov 13) As gold prices continue to struggle following Thursday’s fall to a near 5.5-year low, one technician says he wouldn’t be surprised to see the metal move lower. Commenting on famed economist Nouriel Roubini’s call for $1,000 gold in 2015, Gary Wagner told Kitco News that ‘he could absolutely be correct.’ According to Wagner, it is important to look at the intraday low of $1,073/oz gold hit Thursday. ‘That’s a critical point in that it creates a double bottom…secondly, it is a 61% retracement of larger rally from about $550 up to $1,920/oz,’ he explained. Looking at the charts, Wagner says his range for gold right now is between $1,072-1,100, but he is even considering the $1,000 support level. ‘I think the action that we’ve seen over the last couple of weeks with the dramatic decline is pricing in a rate hike into the equation,’ he said.
However, Wagner sees support coming from the Far East as demand picks up. ‘One thing that I’ve seen consistently is that the [gold] market gets bid down in the US and gets bought back up when it goes to Hong Kong,’ he says, adding that it is important to look at what China is doing in terms of gold demand.