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Gold is going to $1,450, and these charts prove it: Technical analyst

As gold hit the highest level in nearly two years, one technical analyst is certain that major gains are in store for the precious metal.

"Gold is going to $1,450," Zev Spiro said on "Futures Now" on Thursday, a day on which gold rose as high as $1,318 before retreating back below $1,300. Gold was around $1,296 on Friday afternoon, up about 1.5 percent this week and on pace for its third positive week in a row.


"Once we get to $1,306 to $1,308 and hold, I suspect we can push higher within two to three months."

Spiro looked back to March, when prices moved above what he described as a two-year long descending channel. At that time, "the breakout signaled higher prices with a minimum price objective in the $1,450 area," he said.


He also explained that prices could extend beyond this minimum objective to test the $1,525 to $1,550 area, "which was a level of support from 2011 to 2013, that is now overhead resistance."

Ultimately, Spiro believes the landscape for gold remains positive because of the sell-off in May, when prices tested and held above a key range of $1,190 to $1,205.

"The hold of that support reinforced significance of the $1,190 to $1,205 level and it led to the sharp rally we've seen over the past two weeks," he said, noting that gold prices have rallied nearly 7 percent in June.

Spiro also said gold moved above a key level of resistance that's formed by connecting the highs from January and May, when gold prices surpassed $1,308 and $1,306, respectively.


"If we get a hold above $1,306 to $1,308, that would confirm a breakout above this level, which would be positive and signal a continuation of the larger uptrend," he said.

Spiro also said that in the coming weeks, "digestion" of a rally is healthy, and that there may a brief short-term consolidation before a breakout.


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