Gold: Sell the Rally or Buy In?
Kitco News is back from covering the BMO Capital Markets Conference and Gold Stock Analyst Investor Day and now …..re-packing to head to the world's largest mining conference – the PDAC in Toronto. Before we talk conferences and our takeaways, let's look at gold this Friday.
Gold prices are sharply higher and hit a 13-month high in late-morning trading Friday, thanks to a weaker U.S. dollar index. Our technical analyst Jim Wyckoff highlights something important in his morning commentary -- that there may be clues the raw commodity bust is ending. "Several commodity markets and commodity currencies (Australian dollar and Canadian dollar) are showing signals of either bottoming out or of price uptrends under way, to begin to suggest the 'bust' cycle in the raw commodity markets is ending," he says. April gold was last up $18.40 an ounce at $1,277.00.
We asked most of our interviews at the BMO Conference and GSA Day if this gold rally is sustainable – as you know, we have seen the metal have good runs from January to March, only to fizzle out by mid-year. However, the consensus was that the metal rally has reasons to maintain its momentum. Gold prices are up almost 20% from the start of the year. We also asked our guests about the tremendous divergence in gold forecasts – how can it be we have two dominant banks on such polar extremes of the gold game? While Deutsche Bank calls for people to buy gold, Goldman Sachs is giving the sell signal, still holding a forecast of sub-$1,000 gold in 2016. Make sure to catch our interviews with Goldcorp's new CEO, who gave his first interview in his new role to Kitco News, as well as Newmont's Gary Goldberg, Randgold's Mark Bristow and mining magnate Pierre Lassonde.
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