Gold Rises On Short Covering and Bargain Hunting

Gold prices are moderately higher in early U.S. trading Wednesday, boosted on some short covering and bargain hunting. A weaker U.S. dollar index is also adding some buying interest to the precious metals markets Tuesday. The gold market bulls have now pulled themselves back up onto a level near-term technical playing field with the bears. June gold was last up $12.30 at $1,307.50 an ounce. Spot gold was last quoted up $13.70 at $1,309.00. July Comex silver last traded up $0.438 at $19.99 an ounce.

The just-released U.S. producer price index for April was a bit “hot” at up 0.6%. However, the gold market showed little reaction to that data.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza