(Kitco News) The amount of gold buying happening in the new year points to the rising fear factor in the marketplace, says CNBC’s Jim Cramer, adding that gold might be heading towards $1,800 an ounce.
“When I see this endless buying for gold it makes me think for the first time people are just saying, ‘I’m really fearful,’” Cramer told CNBC last week.
When asked what caught his attention, Cramer replied: “Gold, gold, gold,” highlighting Agnico Eagle Mines as one of the few gold companies investors should be buying.
“It’s not just Treasuries. The gold buying has been endless … There are only a few growth gold companies. To name one — Agnico Eagle — that’s the one to buy,” Cramer said.
The latest bought of fear in financial markets is connected to the U.S.-Iran tensions.
“Why aren’t the futures down more. I think they should be. And I think they should be because we haven’t seen what promises to be retaliation,” Cramer added.
Mad Money’s Cramer said he feels like “gold wants to go to $1,700, $1,800” an ounce, which would be “very negative for the market.”
“When I see this endless buying of gold, it makes me think that for the first time maybe people are just saying: ‘I am really fearful,’” he noted.
Last week gold prices surged to seven-year highs after Iran launched a missile strike near U.S. troops in Iraq. Since then, prices have retreated, settling around $1,550 an ounce level as upbeat risk sentiment not he market working against the precious metal.
February Comex gold futures were last trading at $1,550.60, down 0.61% on the day.
Back in November, Cramer highlighted Barrick Gold and Agnico Eagle as the top two gold stock picks.