There are still many who think we haven’t seen the bottom of the gold market yet. Even those who believe that gold prices will rise dramatically in 2017 are saying that it won’t happen before the second half of the year.
At least one well-respected market insider says he expects to see gold drop below $1,000 before it goes higher. Furthermore, he says that movement could be powerful enough to cause it to overshoot the expected bottom support.
That sentiment matches Yves Lamoureux, of Lamoureux & Co., who expects gold prices to hit $850 an ounce. However, Lamoureux is bullish overall. He says:
“Both gold and silver will go down for the first half then move into a new bull market that will last well into 2020. This is the way the market shakes off the last remaining weak hands, prior to resuming the bull trend.”
Lamoureux also pointed out that they were right about gold prices for this year, though many did not agree.
“Where most turned bullish in 2016, in reaction to higher prices, we did not. Our view was and is that the bounce was an echo bubble of the prior bubble.”
Gold prices have definitely perked up this week. And while that is naturally good news for gold bugs, it isn’t – by itself – cause for great celebration. For one thing, there was a lot of ground to recapture and the gains weren’t nearly enough to do so. For another, it’s been a light trading week, which usually renders prices more volatile.
However, there were another couple of positive signs.
One, is that gold prices rose four days in a row, making it seem less like a fluke, even given light trading activity. The other thing is that the dollar has been retreating a bit, at the same time gold was rising, making it seem like the precious metal may be tracking the dollar more consistently again now than it had been.
Now, if it can just get back to rising based on economic and political instability the way it always has in the past, it might just start skyrocketing. And maybe that won’t be until the second half of the year…or maybe it will surprise everyone and take off sooner.