Gold prices are closing in on buy range after pulling back from record high, charts suggest
It may soon be safe to buy gold.
That's according to Mark Newton, founder of Newton Advisors, who says the precious metal could be a buy on a pullback.
"On the intermediate term basis, the charts look pretty compelling." Newton said on CNBC's "Trading Nation" on Thursday. "The weekly trend still looks quite bullish, and one would want to really buy into any sort of pullback we see over the next month."
Gold fell below $1,865 on Thursday despite a bullish note from Citi. Analysts forecast an average price of $2,500 next year as part of their bull case for gold. Newton says the time is coming to dip into the safe-haven asset.
"We did move back to all-time high territory over the last two years. We moved from August of 2018 into August of this past year. … I'm looking at about $100 lower, $1,750 down to $1,650, as being a very attractive area to buy gold, and that should coincide with the dollar starting to roll over early next year. So that should be an excellent time to buy dips," he said.
However, all that glitters is not always gold.
Michael Bapis, managing director of Vios Advisors at Rockefeller Capital, disagrees with the bull case on the metal.
"Gold used to be historically a hedge against currencies, a hedge against rising inflation. Now it's just become a pretty volatile-traded commodity," Bapis said during the same "Trading Nation" segment.
"If you really want to own the space, either look to the gold miners or buy some gold bars or gold coins and put them in your safe downstairs and move on," said Bapis.
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