Wong made his case over the weekend in an email to Bloomberg:
“Gold has seen four major bull markets since 1970: this is another one,” Benjamin Wong, foreign exchange strategist at the Singapore-based bank’s Chief Investment Office, said in an e-mail. “The market has yet to deal with the political uncertainty going into the Nov. 8 presidential election.”
Wong also noted that any pullbacks in gold prices should offer a good level to buy at:
Any dips to $1,296 to $1,300 would be opportunities to accumulate, said Wong. The next rebound may top resistance at about $1,380 and move prices toward $1,437 to $1,455, he added. “Longer term, if the full force of the inverse head-and-shoulders pattern is applied, there remains scope for $1,525.”
The SPDR Gold Trust ETF (NYSE:GLD) fell $0.01 (-0.01%) in premarket trading Monday to $126.83. The GLD, which has gained 25% year-to-date, is the most popular way for investors to invest in gold without accumulating any physical metal, as the ETF tracks the performance of price of gold bullion.
Speaking of bullion, gold prices were mostly flat Monday morning at $1,326.70 per ounce. The last time gold hit $1,500 per ounce was back in April 2013.