Bitcoin has been under pressure on the new CBOE contract and volume has dried up a little, indicating that some of the money that left the metals complex is coming back, said Todd "Bubba" Horwitz of bubbatrading.com

"But gold and silver have work to do before we are believers in this rally. Observe with patience and let the charts do the talking," Horwitz explained.

Gold, which lost appeal with the crypto craze, also managed to push off recent lows as markets continue to doubt that the Federal Reserve will be able to raise interest rates three times next year, he said in an interview on Thursday.

The yellow metal was holding on to modest gains as investors continue to digest what some have described as a hawkish tone from the U.S. Federal Reserve. After raising interest rates Wednesday, the U.S. central bank said that it expects to raise interest rates three times next year. The Fed also increased its economic outlook, saying that it sees the U.S. economy growing 2.5% in 2018.

February gold futures last traded at $1,255 an ounce, up 0.55% on the day.

So are the metals back in rally mode or is this a dead-cat bounce and a selling opportunity?

"There is no way to know with 100% certainty but based on the previous footprint, we would consider this a dead-cat bounce for now and look to be sellers around $1,270 in gold and $16.30 in silver," said Horwitz. "The metals have been under so much pressure that a bounce was coming along with a short squeeze," he said.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.

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