Kitco News: Gold Has This Striking Similarity to Last Year: Wagner

Gold prices are higher Thursday, hitting a six-week high, and have moved above the key psychological barrier at $1,200.00. “What is interesting is that we are now seeing some similarities between the beginning of 2016 and the beginning of 2017,”said  Gary Wagner, publisher of the goldforecast.com. “Gold prices had been under tremendous pressure throughout the 2015 calendar year, with prices culminating at a four-year low at 1050 per ounce. The low seen at the beginning of 2016 was the net result of a multi-year correction, which began after gold had reached its all-time record high of $1900 per ounce. The low that was achieved at the end of 2015 and the beginning of 2016 turned out to be the lowest price gold traded to since October 2009,” he explained. That same low would become the price point that would form a base price with critical support, and more importantly, the beginning of a multi-month rally, which took gold prices to the highest point last year at 1380 per ounce. From July of last year, up until December 2016, gold prices declined to lows not seen since April 2010, finally finding support at 1123.