Precious Metals

Gold Investing

Lundin believes that once gold can hold above US$1,300 or US$1,320 “the key points are the 2016 highs, around US$1,370, US$1,372.” 

The gold price may be struggling to stay above the US$1,300-per-ounce level, but Gold Newsletter Editor Brien Lundin still believes the yellow metal’s long-term outlook is bullish.

“I think the stocks are reflecting that [bullish long-term outlook] in that investors aren’t bailing on the sector — the smart investors aren’t at least,” he said at the Prospectors & Developers Association of Canada (PDAC) convention.

Lundin believes that once gold can hold above US$1,300 or US$1,320 “the key points are the 2016 highs, around US$1,370, US$1,372.”

If we get there, “buying momentum will have a lot of generalist traders coming into the market. That will take us to US$1,400 pretty quickly, and that’s a really big number for gold. After US$1,400 there’s very little resistance before you get up to near the old highs around […] US$1,800, US$1,900.”

Shedding light on technical vs. psychological levels for gold, Lundin suggested that US$1,400 is a major psychological level for the precious metal. “If we clear that big number, US$1,400, I think we’ll clear all the technical levels associated around that area very quickly,” he said.

The benefits of a gold price move would go beyond the gold space, he noted, saying, “nothing really gets markets, investors and people in general excited like a gold bull market.”

Lundin continued, “one thing I tell people is that there’s never been a copper bull market, a zinc bull market, a diamond bull market or a rare earth bull market without a backdrop of a gold bull market. That’s what brings investors to the table, that’s what drives equity prices higher.”

Watch the interview above for more insight from Lundin on the gold price, plus his thoughts on the copper and zinc markets and M&A activity. You can also click here to view our full PDAC 2019 interview playlist on YouTube.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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