Gold breaking past its support level is a bullish momentum indicator, said Peter Hug, global trading director of Kitco Metals.
"Gold was trading in the $1,180 range [a few weeks ago]. We suggested at that time gold holding $1,1180 was a positive momentum indicator and we were actually bullish gold," Hug told Kitco News.
Hug added that past Federal Reserve meetings have been followed by gold initially dropping and then rebounding, and the past meeting in September saw a similar pattern.
"So we think that the lows are definitely in. I don't think you're going to see $1,180 this year, nor do we see silver south of $14.20 ([an ounce] by the end of the year, so we've been constructive the gold market," he said.
This article was written by a staff member of TheStreet.