A major bottom is forming in gold and offers a good opportunity to buy at current levels before moving back to record highs, according to Ron William of RW Advisory.
In an interview with IG Index TV, William discusses the technical background for the precious metal and notes how demand for gold typically follows a seasonal pattern, leading to greater strength in Q3 and Q4 in the approach to Christmas. Longer-term, William thinks gold may experience a price spike akin to the 1980s market, which could take it “well above $2000”.
In terms of tactics, using an analysis of Relative Rotation Graphs, William believes that Gold/JPY and Gold/ZAR may be the best method for gaining exposure to gold.
Link to interview.