Gold Could Be a Buy After a Pullback to $1,700, Chart Analyst Predicts

  • Blue Capital president Bill Baruch predicts gold will reach $2K by the end of 2020.
  • Baruch expects a pullback to $1700 in the short-term, which he called a buying opportunity.

Blue Line Capital president Bill Baruch predicted the price of gold will reach $2,000 by the end of the year, but noted there's a specific level investors should eye.

Speaking on CNBC’s Trading Nation on Tuesday, Baruch explained the technicals for gold point to bullish indicators in the long-term. According to Baruch, the chart for gold is showing a breakout from a head and shoulders pattern that developed through March and April. 

The financial institution head recommended all investors adding gold to their portfolio, which reached a seven-year high earlier in the week. 

Baruch predicted gold to reach $2,000 by the end of the year as a result of the trillions in liquidity being created by the Fed. 

He said, 

I do believe gold over the rest of this year will get to $2,000. I think it should be in your portfolio. The massive liquidity injected by the Federal Reserve, it’s going to support asset prices like equities, but it’s also going to support gold.

Baruch cautioned the possibility of a pullback to $1700, which he said represented a buying opportunity. 

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