$1900 just last month. The turbulence has refueled debate over the precious metal’s stature as a safe haven investment, with many viewing the September 10% sell-off as a sign the bubble burst. Alix Steel, reporter covering the metals beat for TheStreet.com, couldn’t disagree more.
“Prices are broken, you definitely can see that, but I don’t think the bubble has burst here,” she says. Steel points out that the most recent rally in gold has spanned over two-years, and the last two-months alone have seen prices jump over $300 an ounce. “Prices have a right to come off,” she says, expecting volatility to persist in the fourth quarter.
“I don’t think we’re going to see a huge rally right off the bat. I think we’re going to have a period of consolidation,” she says. However, her ear is to the wall on the gold trade and she’s still hearing calls from traders that have gold rebounding by year-end up to levels between $1,800 – $2,000 an ounce.
See the full “Breakout” video below:
Related ETFs: SPDR Gold Shares (NYSE:GLD), iShares Gold Trust (NYSE:IAU), ETFS Physical Swiss Gold Shares (NYSE:SGOL), ETFS Physical Asian Gold Shares (NYSE:AGOL)