Tags: Kilburg | gold | Pento | price

KKM Financial’s Kilburg: Gold ‘Is Near the Bottom Right Now’

By John Morgan   |   Tuesday, 30 Apr 2013 07:50 AM

Gold is poised for a technical breakout higher, and investors who want to catch the wave should prepare to get in with incremental purchases, according to trader Jeff Kilburg, founder and CEO of KKM Financial.

Kilburg told Yahoo, “This is near the bottom right now” before gold moves back up in a significant way.

“Once we get back to $1,500, everyone’s going to come out … and say, ‘That was the bottom,’” Kilburg predicted.

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As a technician, Kilburg is watching for a move above $1,523 per ounce as confirming an upward breakout, after which he would have a target price of $1,700 within the subsequent six months. He said $1,250 to $1,300 is a solid price floor.

“I want to see it get back above $1,500, but I think you can layer into gold positions here.”

Kilburg said gold could spike sharply upward, but that would likely depend on whether inflation is rekindled. In the meantime, he predicted the recent low prices could encourage gold producers to stop mining, which could be another driver of higher prices.

Meanwhile, longtime gold advocate Michael Pento, president of Pento Portfolio Strategies, agreed the next strong direction for gold is higher.

“Gold is real and honest money,” he told Yahoo. “It’s an alternative to currencies being destroyed by central banks.”

Pento, author of “The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market,” listed several reasons investors should own gold.

Among them, he said the nation’s debt-to-gross domestic product ratio is growing, the level of U.S. debt remains near $1 trillion, and real interest rates are negative.

Some experts believe the Federal Reserve’s ultra-loose monetary policy is supportive of commodities such as gold.

“What piece of economic data of late can you point to that would make [Federal Chairman Ben] Bernanke slam on the economic brakes?” he asked.

Goldman Sachs’ exit of a short bet on gold last week, plus an increase in physical demand, helped the precious metal rebound from its April 16 low, CNBC reported.

CNBC contributor Rich Ilczyszyn, founder and chief market strategist at iiTrader, predicted gold needs to push above $1,500 an ounce before investors believe it has bottomed.

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