Commodities Update: Merrill Lynch Analyst Says Gold Could Be Headed to $1,500/Ounce
Although gold futures are down about 20% this year at around $1,309 an ounce, they could be headed to $1,500 an ounce, according to Bank of America Merrill Lynch's head of global technical strategy, MacNeil Curry.
Speaking on CNBC Tuesday and in a new research note, Curry says his view on gold recently changed from bearish to bullish due to technical factors.
"The impulsive gains from the $1,251 low of Oct. 15...say a medium-term base and bullish turn is unfolding," he said in the note. "We look for an ultimate break of the $1,433 highs of Aug. 28, with potential for a push to $1,500/$1,533 long-term resistance. In the next several sessions we would buy a dip into $1,309."