(Kitco News) - Gold prices might be stuck in a consolidation pattern, but now is the time start building a position in the precious metal, said CNBC’s Jim Cramer and host of Mad Money.
Cramer noted that regardless of the election, there are factors that make holding gold a necessity. He noted that the COVID-19 pandemic continues to spread unabated through the U.S., devastating the economy. At the same time, inflation pressures continue to rise as unprecedented stimulus washes through financial markets.
“What do you do; what do you buy if you want some insurance against inflation or just general economic chaos,” he asked. “It’s time-honored. You need some gold.”
Quoting research from Carolyn Boroden, a commodities expert and Fibonacci analyst at FibonacciQueen.com, Cramer said that gold is ripe for a rally.
“The charts, as interpreted by Carolyn Boroden, suggest that gold prices could have a lot more room to run, and that certainly fits with the current backdrop that we see in the news,” he said.
Cramer said that according to Boroden’s analysis, gold prices are in a long-term uptrend as long as the market can hold support above the September low of $1,870 an ounce.
He added that Bororden sees the potential for gold prices to push to a new all-time high around $2,153, if it can clear initial resistance around $1,910 and $1,920.
“As long as the precious metal hangs in above the mid-1800s, call her a buyer. I think she’s going to be dead right,” said Cramer. “You know how much I live gold here.”