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.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%.

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-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.