NEW YORK (Kitco News) - Gold pushed above a key technical barrier Wednesday indicating that the market might have room to move higher.
The yellow metal propelled above the 200-day moving average, marking the first time this technical barrier has been broken since October.
Bill Baruch, chief market strategist for Chicago-based iiTrader.com, said he is looking for further short-term gains.
"I think we could see prices hit $1,180 as investors jump in and start to chase the market. But you really want to be out when everyone is jumping in," he said in an interview with Kitco News.
Baruch added that there is as much potential for gold prices to push above $1,200 an ounce in the long-term as there is for further volatility and another selloff.
'The metal has edged back to new swing highs since, reaching above $1,133 mark this morning and testing our target and major three star resistance at 1134.2-1136.5; this aligns the 200-day moving average which has slowly grinded lower,' he said.
He added, 'If you have been long gold you must look to capitalize on price action against our target.'
Baruch added that this week is all about jobs and will culminate with nonfarm payroll Friday. 'Jobs data got underway this morning and private ADP Payroll data beat expectations while revising last month higher. Gold jolted higher on this number but we must remember the New York floor opened at the same time this number came out and that is more likely the reason for the pop,' Baruch explained.