VIDEO — Gareth Soloway: Next Buying Level for Gold, Oil Outlook After Price Surge

[embedded content]Gareth Soloway: Next Buying Level for Gold, Oil Outlook After Price Surgeyoutu.be

Gold is still poised for a big move after last week’s jump and subsequent fall, but according to Gareth Soloway, chief market strategist at InTheMoneyStocks.com, the yellow metal won’t go straight up.

“I’m kind of expecting a pullback to maybe US$1,850 (per ounce) or so, and then right around there I think is the big buy for the next big move up,” he told the Investing News Network in an interview.

Soloway sees gold surpassing its previous high, and added, “The long term is just so, so rosy for gold that on pullbacks you have to be buyers, especially with the breakout that we have seen here recently.”


The war between Russia and Ukraine has created upward momentum for gold, but Soloway emphasized that for him the thesis is that the US Federal Reserve won’t be able to fully move away from printing money. He noted that although the central bank announced its first rate hike since 2018 this week, it’s facing a difficult balancing act.

“They always seem to react bigger or more aggressively than they should,” he said, noting that the risk of a recession is real. “The Fed is getting a lot of pressure from the government to make sure that they rein in inflation … and I think that they’re getting pushed to do it harder and faster, and that definitely will slow the economy.”

Aside from gold, Soloway also discussed what’s happening with oil. He warned earlier this year that while it could rise to US$90 to US$100 per barrel, this type of increase would be unlikely to last.

Oil surpassed that price point on the back of Russia/Ukraine concerns and is currently around the US$100 level, but Soloway sees the fuel going to US$75 or lower long term.

“With (global interest rate hikes) you’re going to see a global slowdown, and that’s not even taking into account the repercussions of the Russian invasion of Ukraine,” he said. “With a slowdown is going to come less people driving, just naturally less people travelling, and that is going to bring back oil.”

Watch the interview above for more from Soloway on gold, oil and other key markets.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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