Banyan Gold Corp. (TSXV: BYN, OTCQB: BYAGF)
The New Yukon Gold Rush
After a seven-day rally pushed the price of gold to an all-time high of $2,200 per ounce, many investors are surely regretting not buying the precious metal earlier.
However, Carley Garner, a market analyst and co-founder of brokerage firm DeCarley Trading, says investors should not chase the rally at current levels.
Both the weekly and monthly charts of gold show that the precious metal will rise to around $2,600 an ounce, and perhaps even a bit higher, Garner said. But at some point before then, it could retest $2,100 or even $2,050. So now is the time to be patient and wait for a price pullback, and gold is offering investors a better buying opportunity.
The April gold futures contract on the New York Mercantile Exchange went into a temporary pause today (12 March) after seven consecutive days of gains, ending at $2,184.10 an ounce, roughly unchanged from the previous session.
Garner noted that the pullback will not change gold’s uptrend. Although gold has hit an unprecedented all-time high, there is still a lot of money on the sidelines, waiting for the right opportunity. She noted that even with this recent rally, gold is still undervalued compared to the S&P 500 and tech stocks like NVIDIA Corp (Nasdaq: NVDA).
This rally in gold and silver has been somewhat forced out by Bitcoin and NVIDIA, Garner explained, adding that it’s not surprising that gold is hitting all-time highs, as the S&P 500 is also at all-time highs. In this environment, investors are looking for safe-haven assets. The stock market, while rising, harbours some downside risks, and investing in gold can act as a hedge against that risk.
She added that over the past two years, everyone has been talking about rising inflation and geopolitical risks. All these things are happening, and gold has not been able to get out of the woods. This year, the price of gold has finally responded. Now that investors have seen gold’s upward momentum in the recovery, they will pay more attention to gold to protect their portfolios.
