“I think by the end of the year we could very well be testing US$1,600 gold,” said Del Real at the Precious Metals Summit.
Gold’s recent price rise has created optimism among market participants, but not everyone believes the yellow metal’s move will continue unabated.
Speaking at the Precious Metals Summit in Beaver Creek, Colorado, Gerardo Del Real of Resource Stock Digest said he expects gold to fall to lower levels before moving higher again.
“Me being a contrarian, I actually believe that the price of gold went a little too high a little too fast, and I don’t think that this recent pullback is over,” he said. “Not only do I believe that it’ll go through US$1,450 (per ounce), I believe we might even reach US$1,400 and scare some people.”
The good news, said Del Real, is that gold should resume its upward trajectory after declining.
“I believe after that (fall) happens we’re going to have kind of a slingshot effect. And I think by the end of the year we could very well be testing US$1,600 gold. So that’s how volatile I think the next couple of months will be in the gold space.”
That means there could be an upcoming chance for those in the space to add to their portfolios.
“If I’m correct, there’s going to be another opportunity to get into the better names, and maybe (at) cheaper prices,” said Del Real. The key, he said, is for investors to define their risk tolerance and timeline.
Listen to the interview above for more from Del Real on the gold market, including what stocks he’s looking at right now. He also discusses the uranium market and one more metal that he’s interested in at the moment. Our full playlist for the Precious Metals Summit can be found on YouTube.
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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.