Gold is looking to rebound after a steep $100 decline, supported by speculators looking for bargain prices. However, the dollar strengthened on better than expected retail sales, is putting downward pressure on gold prices. See the following article from The Street for more on this.
Gold prices were buoyed somewhat Friday by a struggling U.S. dollar, bargain hunting and positive economic data. China reported a smaller decline in November exports while the U.S. Commerce Department reported a $3.5 billion jump in exports to $136.8 billion on the back of a slumping dollar. These figures cheered investors and increased risk appetite for assets like gold.
The U.S. dollar index was showing some strength rising .65% to $76.51 after better than expected November retail sales, which was putting some short term pressure on gold. Gold prices were rebounding over $14 earlier in the session but currently were flat at $1,125 an ounce at the Comex division of the New York Mercantile Exchange. Gold delivery for February has traded as high as $1,143.40 and as low as $1,122.60.
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Silver prices were currently rising 5 cents to $17.34. Copper was flat at $3.11.
Gold prices are finding support from its steep $100 decline as bargain hunting and potential buying from Russia provides a temporary floor . “I’m looking for $1,125-$1,135 for support area [and] $1,150 as a resistance area”, says George Gero, vice president of global futures at RBC Capital Markets. “If we go above that you will get momentum traders, higher moving averages, higher close and higher volume to get into the market. However, we still have a problem we are still losing open interest as some people are exiting the market.”
Mining stocks, a more leveraged way to invest in gold were indecisive. Barrick Gold(ABX Quote) was down 1% to $41.04 while Newmont Mining(NEM Quote) was flat at $52.13. Shares of Freeport McMoran Copper & Gold(FCX Quote) were little changed at $78.50 while Yamana Gold(AUY Quote) was down 1.50% to $12.32.
Shares of the popular physically baked ETF, SPDR Gold Shares(GLD Quote), were down 1% at $110.28. Market Vectors Gold Miners(GDX Quote) and Market Vectors Juniors(GDXJ Quote) were relatively unchanged at $48.90 and $26.19.
This article has been republished from The Street. You can also view this article at The Street, an investment news and analysis site.