. NEW YORK (TheStreet) -- Mike McGlone, senior analyst at ETF Securities, tells TheStreet's Jill Malandrino a couple of bullish scenarios for gold.
McGlone said the $1,200 level should act as support, which it did earlier this year. With upside resistance near $1,450 per ounce, gold prices are resting in the middle of the range.
He added that a slowing economy and the debt-ceiling debate could help boost gold prices.
However, a rising dollar and rising equity prices - both present today -- are typically bad for gold.But McGlone argued that with equities up 20% this year and gold down 20%, the 40% divergence is getting to be a bit extreme. A pullback from equities should be a positive catalyst for gold to go higher, oftentimes referred to as mean-reversion. However, not all precious metals are performing poorly. Palladium, a common component in automobiles, has been holding up in 2013, up 2%. McGlone concluded that investors could get a basket of precious metals -- gold, silver, platinum and palladium -- with the ETFS Precious Metal Basket Trust ETF (GLTR), or just the white metals -- silver, platinum and palladium -- with the ETFS Physical White Metal Basket Shares ETF (WITE). -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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