Gold Slightly Up on Short Covering, Bargain Hunting, Weaker U.S. Dollar - report
Comex gold futures prices are slightly higher in early trading Wednesday, Kitco News reported.
It said some tepid short covering and bargain hunting are seen after the shellacking the precious yellow metal received Tuesday. The key 'outside markets' are also in a bullish posture for the metals on Wednesday, as the U.S. dollar index is lower and crude oil prices are firmer. February gold traded up $3.00 an ounce at $1,673.80. Spot gold was quoted up $1.70 at $1,673.00. March Comex silver traded down $0.029 at $31.64 an ounce.
Kitco said Tuesday's big downdraft in gold prices, following similar large price down-moves in recent weeks, has gold and silver traders shaken and wary. Some blamed the sharp drop Tuesday on progress made in the U.S. fiscal cliff negotiations, while others said worries about Chinese demand for raw commodities was the culprit. In all likelihood it was technically based selling that triggered sell stops to exacerbate the decline. Tuesday was one of those days when a market watcher just could not make fundamental sense of price action that occurred in many markets.
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