Gold held onto modest gains Thursday as investors digested what some have described as a hawkish tone from the U.S. Fed. Bill Baruch, president of Blue Line Futures, says that gold has begun its bottoming process, as he expects prices to push higher into the new year.

"If someone hasn't bought yet, wait for a pullback; $1,247 to $1,250 an ounce [for gold] is the support I'm looking at," Baruch tells Kitco News.

Citing the Commitment of Traders report, Baruch said that traders have already sold off at a ratio of 20:1 speculative long positions to short positions on the yellow metal. "People have already sold, and I don't think there's going to be a lot more selling to go. Find good support around $1,247, but I'm prepared to buy even around $1,225 as this bottoming process occurs," he said.

Baruch noted that the last nine out of 12 Januaries have finished positive for gold. More specifically, holding gold from December 23 through January 11 in thirteen of the last 15 years yielded an average gain of $27. "I think it's a very seasonal time to buy gold," he added.

Speaking on the other base metals, Baruch said he is a little more "downbeat" on silver. "I want to see it close back above $17 an ounce, but really back above the 200-day moving average at $17.20 in order to really reinvigorate me about silver," he said.

February gold futures closed the session at $1,255 an ounce, up half a percent.

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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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