Gold Bear Turns Near-Term Positive as Some Technical Indicators Shift

Gold continues to flirt with an 11 handle and short interest has increased, but that could be a positive for the yellow metal. Eric Zuccarelli, metals trader on the trading floor of the NYMEX, tells TheStreet’s Jill Malandrino, even though short interest is higher, when everyone takes a bet in one direction and is wrong, those weak shorts should cover, which is bullish because it establishes a level. If gold can move higher than $1202, $1203 you could see $1225, $1230. Zuccarelli, who is bearish on gold says a major factor has been the strength of the U.S. dollar. The key going forward will be interest rates and Fed policy, as Zuccarelli believes gold in the near term is oversold and overbought, respectively. Clues are also coming from other area in the metals complex, like platinum when it hit key levels.