Video News/Chart This with Gary Wagner

(Kitco News) - Gold’s sharp rebound after a hot inflation report may signal that its correction is ending, and a technical model points to the metal finishing the year back above $5,000, according to Gary Wagner, technical analyst at TheGoldForecast.com. Speaking with Kitco News, Wagner said gold’s recovery, after falling as much as $82 on the September inflation report and regaining nearly all of it the next day, formed a two-day “engulfing bullish” candlestick pattern that, if confirmed, points to a pivot from the recent correction back into a bullish phase. Based on his Elliott Wave analysis, he said “it is possible that we will end the year back above $5,000 per ounce,” though he does not expect gold to take out its January record highs in that time. Wagner added that his model would be invalidated if gold closed below 4,127 on a futures basis. On silver, he said the $56 floor he flagged a month ago held, with resistance around $73, and noted that a rising US dollar and a 10-year Treasury yield near its highest since 2002 remain the key headwinds for the metals. A lifelong stacker, Wagner said he continues to accumulate silver.