Gold has been trading in a compressed range all week but the yellow metal has a higher chance of breaking out to the upside than downside, said Todd "Bubba" Horwitz of bubbatrading.com.

"This compression torments both the bulls and the bears. Eventually it's going to break one way or the other and I believe it's going to break to the upside, and I think all signs point that gold is ready to take off to the upside," Horwitz told Kitco News.

Horwitz said that although we may not see upward momentum right away, the risk-reward is still skewed to bullish territories.

On monetary policy, Horwitz said that he expects the Fed to raise rates at the next meeting later in September, but gold should not be adversely affected.

"I think that you're going to see a major selloff in the equities, and rates are going to get away from the Fed and I think money is going to flow into what many consider a safe haven of gold," he said.

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