Photo: AP Images
The technical analysis team at Bank of America Merrill Lynch thinks a month’s long decline in gold is coming to an end.Here’s an excerpt from a note by Mary Ann Bartels and Stephen Suttmeier:
Gold has pulled back to test support at $1550-1500. This support is holding, which sets up gold for a rally. The downtrend line from the August/ September highs provides initial resistance near $1700. Chart resistances are near $1800 and $1900-1925.
Our longer-term view remains that gold is in a secular bull market with upside potential to $2000-2300 to as high as $3000 in coming years.
From Bank of America:
Photo: Bank of America Merrill Lynch
This call echoes the sentiment of Sean Boyle, CEO of mining giant Agnico Eagle.