"The break-out is imminent," Steel Vine predicts
A so-called volatility squeeze in
gold prices may signal a rally to $1,900 an ounce for the first time in more than 16 months, according to technical analysis by Steel Vine Investments LLC.
Gold futures for April delivery have traded in a $200 range on the Comex in New York since July 25, leading to a contracting-triangle pattern of lower highs and higher lows that may mean the
precious metal will rebound, said Spencer Patton, Vine's chief investment officer.
"When we get a breakout from a volatility squeeze, you get a big move in the direction of the breakout, and the odds favor the upside," Patton said. The pattern suggests that "the break-out is imminent," he said.
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