Gold prices: Traders who missed lows wait for a dip
Gold prices have surged above $1,600 an ounce. Some traders who missed the lows are waiting for gold prices to fall again before buying.
Gold prices have surged above $1,600 an ounce. Some traders who missed the lows are waiting for gold prices to fall again before buying.
Gold聽bulls are feeling more comfortable as the precious metal聽rose more than 2陆 percent聽on positive economic data, but is it time to get in the trade?
聽鈥淚 got unlucky in not turning bullish properly,鈥� noted investor聽Dennis Gartman聽said Tuesday. 鈥淚t鈥檚 still a long-term bull market, and I鈥檒l get bullish again. It looks like I missed the lows. Those things happen.鈥�
听罢丑别听Gartman Letter聽publisher made headlines when he announced he had聽sold off the gold in his personal account.
Spot gold聽was up above $1,614 per ounce on Wednesday. U.S. gold futures聽were up $38 at $1,604 per ounce. Shares of聽GLD, the gold ETF, traded at $156.
聽鈥淚f gold鈥檚 good, it鈥檚 not going to give Dennis a chance to get back in. It鈥檚 sort of like, if everyone can get in, then why bother?鈥� said聽Mark Fisher, founder and CEO of MBF Clearing Corp. 鈥淢arkets that are really good, stocks that are really good, positions that are really good, you get one chance.鈥�
聽鈥淔ast Money鈥� pro聽Jon Najarian聽said he would wait for a pullback below the gains GLD made over the past four days.
聽鈥淭hat鈥檚 the level that I鈥檇 look for it to break before you try to reload, and that is basically to break through $149 again,鈥� he said. 鈥淚 don鈥檛 know that it does.鈥�
聽Dennis Gartman said that聽agricultural commodities聽鈥� and copper 鈥� were worth a look.
聽鈥淚 think the most important thing to look at, though, is what鈥檚 going on in the grain market. You鈥檙e leaving gaps behind in everything,鈥� he said, noting that beans, corn and wheat were holding gains. 鈥淚 think you鈥檝e got something going there that might for a period of time.鈥�
Copper, too, provided another signal.
鈥淭he strength in the base metals is telling you that the global economy is in better condition that people thought it was,鈥� Gartman said, adding that there were probably too many people who where short. 鈥淎ll I can tell you is you don鈥檛 want to be short of it right now.鈥�
Brian Kelly wasn鈥檛 a buyer.
鈥淎s China goes, copper will go,鈥� he said. 鈥淐hina buys about 40 percent of the global supply in copper, so if you feel like the Chinese economy is reaccelerating that鈥檚 where you want to be. I myself personally will wait on copper. I think you can have a much better opportunity buying U.S. stocks.鈥�
Kelly added that seasonal effects and China鈥檚 reliance on exports to Europe made him skeptical of an economic rally for China.