Can Gold Price Fly In The Week Ahead?

New York (June 25)  Can gold fly in the week ahead? Maybe. We do expect a slow, upward climb. We are more optimistic than we were at the beginning of last week.

Readers of our weekly column know that we weigh multiple factors to determine our precious metal investment allocations. Investors in the SPDR Gold Trust ETF (NYSEARCA:GLD) will be pleased to see that we have upgraded gold in three categories from last week. We will enter next week optimistic.

Last week, we were not convinced that gold had reached a bottom, and therefore we issued a cautionary summary, shown below.

In the past week, the precious metals market had several favorable developments, and we have increased our investment exposure.

Technical Picture

In last week's report, we said that "GLD could easily find a bottom here, although $118 might be a better long entry point." Indeed, the low in GLD was $118.07 for week, and it recovered to close the week at $119.43, just under its 50-week moving average.

SOURCE: SeekingAlpha