With bullion recently hitting a three-week low of $1,257, one commodities trader is adamant that the charts are signaling sunshine on the horizon for gold bugs.
Jim Iuorio, managing director of TJM Institutional Services, believes the commodity will enter into a long-term uptrend swing.
I'm a longer-term bull in gold and if you look at the long-term chart the trend is still higher," Iuorio said. "What the Fed said yesterday is disconcerting to the market, and that's why the dollar rallied so hard."
Iuorio feels deteriorating data will soon pull dollar prices down and, if gold stays above $1,235, then the longer trend is ultimately positive for the yellow metal. However, he warned that more hawkish rhetoric could indeed deter his thesis.
"I'm going to be wrong if they keep that talk up," the trader said. "Gold's going to go lower. If it settles below $1,230, that's going to change me into a bear."
Source: Bloomberg
Trader I. Ivanov
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