Gold Prices: Analyst Issues Grim Outlook for Gold Investors

gold pricesLower Gold Prices Ahead?

Brace yourself for lower gold prices.

A technical analyst advises investors to sell their gold holdings now because no more rally is expected.

In written remarks to CNBC on Monday, Oppenheimer’s Ari Wald said bullion’s recent breach of its long-term downtrend reminds him of 1999, when gold rose powerfully in a short period of time to break out of a period of progressively lower prices.

“While that certainly set up a better trading environment, it wasn’t off to the races in 1999,” Wald said. (Source: “For gold, it’s 1999 all over again: Technician,” CNBC, March 15, 2016.)

A similar chart pattern has unfolded itself this time around, he said. Consequently, he predicts only mild gains at best for the yellow metal for the remainder of the year.

“There are signs of selling pressure at $1,280,” he said, adding that he is not exactly bearish on gold, either—citing support on the chart just below $1,200.

Since the beginning of the year, gold has gained 18.5%, making it the 2016 best-performing investment. The metal touched a one-year high of $1,287.80 on March 11.

Another analyst, on the other hand, believes the current environment is bullish for gold prices.

“In a day and age where cash doesn’t yield anything, gold looks very, very attractive, and I think that’s why you’re seeing this very strong bid underneath gold,” Boris Schlossberg of BK Asset Management told CNBC on Monday.

Schlossberg recommended buying the popular SDPR Gold Trust ETF (NYSEArca:GLD), which has seen massive inflows this year. GLD was hovering around $120.50 on Wednesday. (Source: Ibid.)