Gold Trader Calls Short-Term Bounce and Sees Technical Room to Move Higher

Gold has made a comeback over the past couple of weeks since trading below the $1,185 an ounce level. Eric Zuccarelli, independent metals trader on the trading floor of the NYMEX, tells TheStreet’s Jill Malandrino the $1,200 an ounce level in gold is very important. The last time we got there was in the beginning of the year and saw a spike capitulation moment, and this time around felt eerily similar when gold hit $1,183 an ounce and bounced back. Zuccarelli has been in the longer-term bear camp for quite some time, and with the technical rally that has come out of the shorts and gold breaking through $1,250 an ounce resistance, it may have some legs to the upside. The fear factor in the market has subsided a bit, and Zuccarelli could see adding some gold as a hedge here. While he does not see gold getting to almost $1,400 an ounce like it did at the end of 2013, the yellow metal could possibly test the $1,300 an ounce level.