VIDEO — Gareth Soloway: Gold Buying Opportunity as Weak Hands Flushed Out
“I’m positioning for higher gold prices down the line. I look at this dip as a buying opportunity,” said Gareth Soloway of InTheMoneyStocks.com.
The gold price has been on the decline since last week’s US Federal Reserve meeting, dropping below the US$1,800 per ounce mark and staying there.
Speaking to the Investing News Network, Gareth Soloway, chief market strategist at InTheMoneyStocks.com, said US 10 Year Treasury yield activity had an impact on the yellow metal.
“I think the biggest surprise was the whippy nature of the yields. The 10 year yield initially spiked higher after the comments, which were much more hawkish I think than the market expected, and then we saw them reverse back down afterwards,” he said on Tuesday (June 22).
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“It kind of created this whippy situation where we saw a lot of things like gold swing lower, and other things out there, including the market, freaking out just a bit as well.”
Soloway, who previously shared a US$2,860 price target for the metal, explained that he sees that level being reached in two to three years based on historical gold price activity. Looking at 2021, he thinks US$2,100 is reasonable to expect by the end of the year.
“I’m positioning for higher gold prices down the line. I look at this dip as a buying opportunity. I think it was kind of a flush out for the weaker hands for gold,” he said.
“I still look at the fundamental story that is — you know, the printing of money continues with the debt in the US. It’s not going to go away, they’re going to continue to have to devalue the dollar to pay for the debt, and therefore the long term of gold is very, very bullish.”
Soloway also spoke about the S&P 500 (INDEXSP:.INX), which he believes may be in for a correction.
“I kind of have spread my money out where I’m short the indices and a few individual stocks that I think are toppy, but then I also have long exposure through names that I look at as being oversold already, where if the markets do collapse they’re not going to get punished very much, and I think that there is value there over the next three to six months.”
Watch the the interview above for more from Soloway on gold, the markets and bitcoin.
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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.
