Gold Rebounds for Higher Close

Turning to the technical side of things, at least one chart watcher thinks the stall in the gold price surge, which has seen spot prices rise from a low of about $608 in early January to around $665 recently, may be the start of something bearish.

"I think we are just about near the end of the rally leg that began in October," says Steve Hochberg, chief market analyst at Elliott Wave International in Gainesville, Ga., noting that major chart resistance at around $690 could stymie any attempt at a near-term breakout.

"I think the next leg down will be a lot longer and deeper than a lot of gold bulls think at this stage. Our target is somewhere around $450 to $495," says Hochberg.

He also notes a divergence between the mining equities and the bullion price. While the recent gold price rally has taken the bullion ETFs, streetTracks Gold Shares (GLD Quote) and iShares Comex Gold Trust (IAU Quote), past their September highs, the Philadelphia Gold and Silver Sector Index has languished below that level.

The index closed at 143.12, off 1.1% and down from above 150 in early September. Spot bullion climbed to almost $640 around the same time.

Such a divergence, he says, points to an over-extended price.

Turning to base metals, May delivery copper slipped 2 cents to $2.66 a pound on the Comex. The decline was likely sparked by the weaker construction data. Copper is used for electrical wiring in home construction.