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Gold bugs regain some swagger

July 9, 2013: 1:02 PM ET

Gold prices may have hit bottom. Click chart for more price action

After enduring a brutal sell-off this year, gold bugs appear to be making a stand.

Gold prices rose 1% to $1,246.90 an ounce Tuesday after earlier making a run at $1,260.

Of course, gold is still down more than 33% from the all-time highs near $1,900 in September 2011.

But Tuesday's rebound raised hopes on StockTwits that the worst is over for the yellow metal.

$NUGT fighting and winning some ground against the rising tide of $GLD bears.

$GLD Decent support, careful shorties, only a matter of time before you get burnt

$GLD 's massive selloff has cleared a path for a decent entry ST. Now the bullishness develops for $1300++. This could be very lucrative.

The gains come one day before the Federal Reserve releases minutes from its latest policy meeting and chairman Ben Bernanke delivers a speech in Cambridge, Mass.

Gold has been punished as investors brace for the Fed to taper its bond buying as the economy improves.

Many gold bugs argue that the Fed's "money printing" over the past few years will weaken the U.S. dollar and lead to inflation down the road.

But the greenback has strengthened as interest rates rise in the United States. And inflation is expected to remain subdued.

Still, the Fed has a history of overestimating the strength of the economic recovery and critics say the taper talk is premature.

$SLV $GLD $GDX Ben speaks tomorrow, with IMF lowering global/US growth forecast from 3.3% to 3.1% - The Fed projections seem too high again

We've been bullish on the gold sector at these levels. Low risk high reward. $GDX, $GLD, $ABX

Traders were also calling for a turnaround in mining stocks, which have fallen in sympathy with gold prices.

$NUGT choppy but going way higher same with all coal related

For an ETF that's down 90% this year, a 5% bounce is a step in the right direction, albeit a small one.

$NUGT $GDX Miners looks like they are making higher lows.. explosive stuff.

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Ben Rooney
Ben Rooney
Staff writer, CNNMoney

Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news. Follow Ben on Twitter: @ben_rooney

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