(Kitco News) – Gold prices have moved up from moderate overnight losses to trade modestly higher in mid-morning U.S. dealings Wednesday. Some short covering and perceived bargain hunting following the selling pressure seen earlier this week are featured. The U.S. dollar index has backed down from its session high and crude oil prices are posting good gains today, which are also encouraging some buying interest in the gold and silver markets.
Gold prices this week had backed well down from last week’s two-month high of $1,113.10 an ounce, basis February Comex futures. The bulls needed to step up and show some strength, in order to keep the chart-based sellers from gaining confidence and stepping into the market on the short side.
February gold was last up $3.00 at $1,088.50 an ounce.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
