It may soon be prudent to buy gold.
That’s according to Mark Newton, founder of Newton Advisors, who says the precious metal could be a buy in case of a downturn.
“In the medium term, the charts look pretty convincing.” Newton said Thursday on CNBC’s “Trading Nation”. “The weekly trend still looks pretty bullish, and we would really like to buy into whatever sort of pullback we see over the next month or so.”
Gold fell below $ 1,865 on Thursday despite a bullish note from Citi. Analysts are forecasting an average price of $ 2,500 next year as part of their bullish argument for gold. Newton says now is the time to tap into the safe haven asset.
“We are back to an all time high over the past two years. We went from August 2018 to August of last year.… I am looking at about $ 100 less, $ 1,750 to $ 1,650, as a very attractive area to buy gold, and that should coincide with the dollar rotation begins early next year. So this should be a great time to buy troughs, ”he said.
However, not all that glitters is gold.
Michael Bapis, chief executive of Vios Advisors at Rockefeller Capital, disagrees with the bull-in-metal deal.
“Gold was historically a currency hedge, a hedge against rising inflation. Now it has just become a fairly volatile commodity,” Bapis said during the same Trading Nation segment.
“If you really want to own the space, watch the gold miners or buy some gold bars or gold coins and put them in your safe downstairs and move on,” Bapis said. .