(Kitco News) – Although gold has seen an impressive rally since the start of the year, one mining executive still doesn’t rule out the possibility of prices falling back into triple digit territory.
Ian Ball, chief executive officer at Abitibi Royalties (TSX.V: RZZ) bought up the idea of $900 gold prices at the end of 2015 when prices were hovering just above multi-year lows; and, in a recent interview with Kitco News, he said that his outlook still hasn’t changed since markets are still bottoming out.
“What I said in December was that the market was in the bottom third or bottom 20% of its bear market and I think we are still within that range,” he said. Gold has made significant gains against a broad range of currencies in an environment of global negative bond yields, but Ball explained that investors still need to use caution when jumping into the gold market.
“Investors need to realize that even when things go up, they don’t go up in a straight line,” he said. “Prices have gone in a straight line for the past two months and if you look at a long-term chart, there is a lot of resistance at $1,200 gold.”
Despite renewed optimism in the gold space, Ball explained that he would like to see more consolidation around the $1,200 level for a longer period to be convinced that the market is in a new uptrend.
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