Gold Could Even Go to $1,400; Here’s Why

(June 16, 2016 - by Jim Wyckoff)

Gold’s momentum continues following Wednesday’s Federal Reserve meeting, and one senior technical analysts says the metal has potential to break through more upside targets.

Speaking with Kitco News ahead of the FOMC meeting, Kitco’s senior technical analyst Jim Wyckoff said he expected gold to break above $1,308 an ounce post-Fed, which the metal did. Gold futures managed to hit nearly a two-year high Thursday, with August gold last up almost 2% at $1,313.10 an ounce.

“You could see $1,350 or $1,400 if the market wants to continue to run,” he told Daniela Cambone.

What is driving the gold market?

According to Wyckoff, it is really global bond yields and delayed interest rate hikes in the U.S. that are pushing gold higher.

“Right now, gold market is more closely correlated with bond yield and uncertainty in the marketplace and a little less focused on the us dollar index.”

The uncertainty Wyckoff is referring to is the upcoming U.K. referendum that will decide whether or not the country will remain in the European Union.