Why the price of gold is heading for a 'modest new all-time high'

4.22.22 - The IRS is in No Position to Do Your Taxes

Gold last traded at $1,933 an ounce. Silver at $24.25 an ounce.

NEWS SUMMARY: Precious metal prices dipped Friday following hawkish Fedspeak and a firmer dollar. U.S. stocks traded lower, heading toward another losing week amid busy earnings and rising bond yields.

Brief Morning Brief--"Last week, I got the call. A dear relative living on a pension who's facing soaring prices for food, gas, and medicine - along with everything else - asked me how to buy gold. Whether one considers gold a hedge against inflation or Armageddon itself - and there are arguments both ways - simple market technicals are forecasting gold prices will surge again to record highs, according to one Wall Street bank.

Monday, gold futures briefly topped $2,000 per ounce - less than $100 from its 2020 all-time high. BofA Securities' Paul Ciana on Monday said that 'a dip from $2,000 looks like a buying opportunity.' Gold subsequently dipped below $1,950 before settling at $1,955.60 per ounce Wednesday.

Ciana has been bullish on gold since early February - just before gold broke to the upside after months of consolidation. He's reiterating his bullish gold trend view with a 2022 price target of $2,175, which is 'modestly' higher than the current record high of $2,089.

He also has a bullish conviction on silver and believes that both gold and silver could outperform copper, bonds and 'maybe oil too.' But that could take a few months to play out and be confirmed, he said....

Ciana's $2,175 price target uses a so-called measured move, which is calculated by adding the price range of the consolidation to the breakout apex....That $2,175 price target is only about 11% from the current price, but it's also only a technical target in play this year."