Dange attributed the rise in prices to short-covering, as there has been a record number of short-sellers in both silver and gold.
Other commodities, such as energy, have had strength in recent days, with that strength now trickling into the precious metals, he said.
Dange added that the slight weakness in the dollar and U.S. equities have also helped give gold prices a boost.Although this move looks similar to one last week that ultimately fizzled, Dange said this price action seems different. Gold prices ability to hold the $1,210-per-ounce level and rally through the $1,250-per-ounce level is a good sign for bulls, Dange said. Dange concluded that it would be bullish for gold to close at more than $1,251 an ounce, which would allow for a potential rally into year's end. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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