Gold and silver are being held back right now, Don Durrett of GoldStockData.com told the Investing News Network, but he believes a final selloff on Wall Street will clear the path for the precious metals prices to shine.
"What we're waiting for is the headwinds of the market to basically clear," he explained. "And what I mean by that is we need to have the stock market sell off in order for there to be no headwind for gold to finally be able to move higher."
When that capitulation happens, the stock market will no longer be a hindrance. "Once it gets out of the way, then basically people aren't going to be putting their money into stocks, and they're going to be leery of bonds as well," Durrett said.
His breakout numbers are US$2,080 per ounce for gold and US$30 per ounce for silver, but both could move lower in the short term — Durrett said gold could fall to the US$1,800 to US$1,850 level during the capitulation event he described. However, if the yellow metal can hold at US$1,800, it should be able to get all the way up to US$2,300 this year.