Gold Rises on Short Covering



Gold prices are solidly higher and near the daily high in late-morning trading Wednesday. Short covering in the futures market and bargain hunting in the cash market are featured. Position evening ahead of the FOMC meeting’s conclusion Thursday afternoon is also seen in gold today. Buy stop orders were triggered in the futures market when December gold prices pushed above near-term technical resistance levels on the daily chart. A weakening U.S. dollar index and higher crude oil prices today are also bullish “outside market” forces helping to push gold prices higher. December gold was last up $15.60 an ounce at $1,118.10.

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 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