Those gains, however, may be only temporary, according to Phil Streible, senior commodities broker at RJO Futures. He told TheStreet's Joe Deaux that gold may be headed lower to retest the recent lows.
Deaux pointed out that $1,200 appears to be support for the yellow metal, despite that level temporarily failing in the past.
Streible suggested that issues such as tapering, higher interest rates and improving economic numbers will weigh on the yellow metal in the next week or two.Assuming the economic data remained strong, the S&P 500 will likely continue to trend higher, Streible said. If equities continue to move higher, then there will be little reason for investors to sell them and buy gold. If gold falls below $1,200, there will be some buyers of physical gold, he admitted. Ultimately, Streible concluded that gold was still likely to head lower. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell