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Mihir Dange, co-founder of Arbitrage, says he is flat right now and is sideways bullish on the gold market. “We’re still waiting on a lot of events,” says Dange referring to Washington’s failed attempt over the weekend to resolve the debt ceiling as well as Europe’s inability to help Greece or prevent contagion. These events “could push the market one way or another,” says Dange. “It will probably be choppy between $1,560 and $1,575 and look for a breakout above $1,577″ an ounce, the metals intra-day record.

Dange isn’t concerned that gold prices haven’t hit new records given the spate of negative headlines pounding markets, but says the fact that gold has held up while other assets saw mass liquidation is very bullish.

Silver, on the other hand, typically a go-to metal like gold, has been suffering from the industrial metal blues. As investors worry about a global slowdown, flat or negative demand from Europe and the U.S., and credit tightening in emerging market countries — typically voracious consumers of industrial metals — silver has become less appealing.

Gold futures rose Tuesday, supported by ongoing worries about the euro-zone debt crisis and poised to extend gains into a sixth session. Gold for August delivery added $4.10, or 0.3%, to $1,553.40 an ounce on the Comex division of the New York Mercantile Exchange. It had earlier wavered between small gains and losses....read more