Video News/Chart This with Gary Wagner

(Kitco News) - Gold is sitting on a technical fault line ahead of next week's Federal Reserve decision, with support for December futures near $4,350 and major support just below $4,000, according to Gary Wagner, editor of TheGoldForecast.com and Kitco News technical analyst. Speaking with Kitco News after a hotter-than-expected inflation report pushed the odds of a September rate hike to nearly 89%, Wagner said gold rebounded even as the data would traditionally have weighed on it, which he attributed to steady safe-haven and inflation-hedge demand. He put key resistance for silver near $71.50 and noted the metal remains roughly half off its January record. Wagner also observed that corrections which once played out over years are now unfolding in months, a sign of a faster-moving market, and cautioned against expecting a straight line higher, quoting former Fed Chair Ben Bernanke that "trees don't grow to the sky." He said investors should hold precious metals as portfolio insurance, recommending an allocation of 10% to 15%, and added that he is a lifelong stacker who does not expect to ever sell his own holdings.