Charts Predict: Gold Heading To $1,200
The recent rally in the price of gold will continue and push on to new all-time highs around $1,200 per troy ounce, David Sneddon, technical analyst at Credit Suisse, told CNBC.
“We think we’ve seen a significant medium-term break higher,” Sneddon said about the gold chart.
“We think that target is not only the $1,033 all-time high we saw back in 2008, but we think we go a lot higher than that … we’ve completed a medium-term bullish continuation pattern that should take us up to $1,100 and eventually, we think, on towards the $1,200 level,” he said.
Gold started to rally before the dollar selloff really took hold, Sneddon pointed out. But it has obviously benefited hugely from the move in the dollar over the last couple of weeks, he added.
Investors looking for more reassurance that gold is going higher should watch the price of the precious metal in other currencies such as the euro and Swiss franc to see if it breaks higher, he said.
“For a lot of fundamental reasons gold is going higher, but this is the first time in a long time that technically the idea of gold going higher also makes a lot of sense,” John Carter, president of Trade the Markets, told CNBC.
“I think $1,200 is a very good initial target for gold,” Carter added.
- Watch the video above for the full David Sneddon interview and click here for the John Carter interview >>>
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