Gold bugs may have a firmer grip on the market than you think.
Consolidation in the precious metal has become the driving force for positive near-term momentum in the space, said Zev Spiro, CEO and chief market technician at Orips Research. It comes as both gold and silver trade around their highs for the year.
"As long as prices hold above support in the $1,190-$1,205 area, then the composure remains positive," Spiro told CNBC's "Futures Now" in a recent interview. "Upward momentum is expected with a breakout above the $1,275-$1,280 area. So, that's where I expect the new wave of buying would come in and could carry prices higher."
Spiro is forecasting the yellow metal to cost about $200 more an ounce by the end of the year,
He added that "$1,450 is my objective. Once we get a break above the $1,280 area, I suspect there will be a fast directional move higher."