Investors’ growing fascination with the gold price pushing above $1,000 per troy ounce is not backed up by the charts and investors should wait until it breaks above the real resistance level of $1,034 before piling in, Clive Lambert, director at FuturesTechs, told CNBC.
“Everyone’s talking about gold at the moment … and everyone (is) bullish,” Lambert said.
Gold futures prices closed above the $1,000 mark only three times and this time round they haven't, he said.
“I’m saying be careful and let’s not get too carried away with all this $2,000 gold talk until we actually break the next important resistance level, which is actually $1,034. That is the level on the chart that we should be getting excited about, not $1,000,” Lambert said.
“$1,000 is just a round number, it’s proved to be a strong resistance, (but) there’s still some work to do before it gets really bullish,” he said.
Lambert is also cautious on the outlook for oil and thinks the price of a barrel of London Brent crude is set for weakness. He recommends selling on the recent price rise.
- Watch the full interview with Clive Lambert above.
For the Investor: