Spot Gold Prices Set For Breakout: Analysts

NEW YORK (TheStreet) -- Spot gold prices could break out of a tight trading range next week pending a visit by the Chinese president, the release of retail slaes numbers and ahead of the Chinese new year holiday, analysts say.

In the meantime, one analyst continues to believe that junior gold stocks will offer the best exposure to any uptick in gold prices.

Kitco senior analyst Jon Nadler said gold prices could hop if signs of discord between the U.S. and China arise amid Chinese President Hu Jintao's visit to the White House next week. However, he thinks that it's more likely that the nations' leaders will stick to cooperative dialogue.

Nadler said to turn bullish again, gold needs to overcome $1,390 an ounce and not break support under $1,360.

News relating to Europe's sovereign debt and inflation has already been baked into the current gold prices, Nadler said.

"I would look for gold to stay in this trading range until we get a new piece of news," said Casimir Capital managing director Wayne Atwell.

James DiGeorgia, the founder and editor of Gold & Energy Advisor said gold managed to push above its 50-day moving average of about $1,384 Tuesday, and as long as the yellow metal stays at these levels, it could again rise above $1,400.

I think the big upward move in both platinum and palladium are very bullish for the precious metals complex," he said.

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