Star CNBC commentator Jim Cramer says gold is headed higher. Why? Because gold-mining stocks have begun rebounding, he says.
“Gold stocks peaked 30 days before gold peaked,” Cramer said on CNBC, referring to gold’s record high of $1,432.50 an ounce Dec. 7.
“Now look at gold stocks going up, even though gold (itself) is doing nothing,” he says. Gold currently trades around $1,339.
“These stocks have always been a leading indicator of the actual physical metal,” Cramer says. “I want to buy the GLD off the move.” He was referring to the SPDR Gold Shares exchange-traded fund, which is made up of physical gold.
Others have turned bullish on the precious metal too. After gold suffered its worst January in 14 years, turmoil in the Mideast and gold’s ability to stay above its 150-day moving average augur better days ahead, some experts tell Bloomberg.
The technical strength signals gold may soar 21 percent to a new record high by June 30, according to a technical analysis by the Hightower Report.
“The capitulation is over,” says Tom Pawlicki, an analyst at MF Global Holdings in Chicago, who correctly predicted in September that gold would keep rallying to $1,350 after reaching a record.
“The liquidation has washed out the weak trades and put gold at a point that looks attractive to new buyers,” he tells Bloomberg.
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