Absolute Bottom in Gold Confirmed for This Technical Analyst

KITCO NEWS -- As gold prices continue to rise Tuesday, one technical analyst says he expects the momentum to continue.
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KITCO NEWS -- As gold prices continue to rise Tuesday, one technical analyst says he expects the momentum to continue. ‘We saw what I believe is the absolute bottom in terms of gold prices when it came intraday down to about $1,071 and since that, we’ve seen the market rise,’ Gary Wagner, editor of thegoldforecast.com, told Kitco News in an interview Tuesday. ‘I think we will probably see some stabilization.’ According to Wagner, it is also interesting that gold prices and equities are moving in tandem, as they did in 2009, he said. December gold futures were last up 0.11% at $1,165.80 an ounce, while major U.S. indices remain flat on the day. Looking at silver, Wagner said to expect more volatility for the metal ahead. December Comex silver futures continued their rally from last week and hit a high of about $16.08/oz Monday. The white metal is currently back down at around $15.90/oz. ‘We saw [silver] rise from $14 to where it moved almost $2 in under two weeks in trading, so we will see volatility and may see much more upside,’ Wagner said. The technical forecaster is also optimistic about the platinum group metals, particularly palladium. ‘We’ve got palladium that has been just a stellar performer, actually moving closer and closer to parity with platinum,’ he noted. ‘So that is certainly something you want to watch as we go into the end of the year.’