Gold Recovers Slightly on Short Covering

Gold market prices have pushed modestly above unchanged in mid-morning dealings Tuesday. Some short covering and bargain hunting are featured on the rebound.

The U.S. dollar index is trading slightly lower and near its daily low, which is a mildly short-term supportive factor. But the overall strength of the greenback as it hovers near this week’s four-year high remains a major bearish anchor for the precious metals.

Gold market bulls were also encouraged their yellow metal prices did not sustain a sell-off in the aftermath of a stronger-than-expected U.S. GDP report issued earlier Tuesday morning. February Comex gold was last up $4.50 an ounce at $1,201.10.

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 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