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This Is How Much Room Gold and Stocks Have Left Before a Correction

(Kitco News) - The Fed's dovish position is likely to send gold several hundred dollars an ounce higher in the next six to 12 months, this according to Todd Gordon, founder of TradingAnalysis.com. "I don't think this is the birth of a new gold market. I do see upside though, into the $1,500s, $1,600s, potentially $1,700s but unfortunately I think at that point the Fed is going to start to reverse course, forced to get a little more hawkish, and I think that might choke off that gold rally," Gordon told Kitco News. On technicals, the charts suggest that gold futures could be headed to $1,450 to $1,500 and Gordon placed a trade targeting those price levels. Gold has since climbed $20 since the time of the interview and when Gordon placed the trade on Tuesday, with spot gold last trading at $1,425.6 an ounce as of 4:30 pm EST Wednesday. Gordon also looks to the bond market as another clue on gold's price direction. "You look at the bond market. The 30-year bond has been up for almost 38 years, almost four decades. We tried to break down, interest rates tried to finally find a low but I think that was a false break and we're coming back," he said. "The bond market has a solid correlation with the gold market." On the economy, Gordon remains optimistic and sees more upside in the stock markets. "I do see upside in the stock markets towards 3,200 to 3,300. I think at that point, from a technical point of view, inflation will begin to come in and the Fed will begin to tighten policy and that could send equities back lower," he said. Watch the full interview and more on Kitco News. Billionaire Dreams Crushed? Golden Asteroid Is Hogwash, Says Expert World's Largest Gold Coin Lands in New York

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