Charts Predict Big Gold Rally

Written by Staff Writer

BuyBuyChart signals double-digit rally for gold -CNBC
"The gold trade is shining bright. Investors rushed into the commodity on Thursday, pushing it to a four-month high. Gold is now just 1% away from its 52-week high of $1,349.80 from February, and's Todd Gordon believes it may soon surpass that level.

After examining the charts, he says bullion could climb as high as $1,500. Gold has been steadily climbing this year and is now trading around a key level that has provided resistance in the past. Since the commodity is knocking at former highs, Gordon believes that 'the next $60' will see a lot of 'buy stops going off,' which is when traders place orders ahead of time to buy something once it hits a specific price. This activity, Gordon believes, could lead to an acceleration in gold's climb, lifting it back to former highs and maybe even as high as $1,500....In addition to gold looking attractive on a technical basis, Gordon notes that the current economic backdrop of a dovish Fed, a weak dollar and a rise in geopolitical tensions supports a boom in the commodity."