Expert Says Gold Has Harder Days Ahead
(Kitco News) - Gold investors should eye an evenlower target from current levels, as there is currently no need for a flight tosafety, said Todd“Bubba” Horwitz of bubbatrading.com.
“I think soon there will be goodnews, but I think we’ve broken down and violated a lot of key levels, and Ithink really, the next real level that I’m going to want to step in, unless werally sooner, is probably around $1,240 [an ounce],” Horwitz told Kitco News.
Since the last Fed meeting onJune 13, in which the central bank raised interest rates by 25 basis points,gold has fallen nearly 3%. Spot gold closed at $1,267 an ounce Thursday, $1.50an ounce lower on the day.
Horwitz said that investors havebeen complacent with precious metals lately.
“I think that too many people aremaking too big a deal out of these trade wars and that is causing [a sell-offin gold] and keeping a pressure on the metals right now,” he said.
Horwitz said that gold’s weaknesshas been minimally affected by the dollar.
“Gold is a nice hard asset. Idon’t think it’s a dollar play any more, not at these levels,” he said. “Thedollar is going much, much higher, but I think gold will eventually find itsway and go much higher as well.”
The Fed’s widely anticipated ratehike on June 13 has made the dollar stronger, with the dollar index up 1.2%since the Fed’s announcement.
Meanwhile, Horwitz said thatsilver is always a buy for him.
“As a trader, I wouldn’t alwaysbe a buyer of silver, but as an investor, I’m always a buyer of silver,” hesaid.
The veteran analyst added thatbesides being a “great hard asset,” silver also has industrial properties aswell.
By David LinFor Kitco News
Follow @davidlinMTL
dlin@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.