Calmer Markets Boost Gold

"Only if the price can get back above resistance at $653 will the uptrend resume," says Larry Levin, president of SecretsOfTraders.com, in Chicago. He sees support at around $636, which if breached leaves open the possibility for a fall through to $605.

In the official sector, the European Central Bank said it sold 34 million euros of gold and receivables last week, or about 2 tons.

On this side of the Atlantic, the U.S. Mint said sales of its bullion coins fell in February compared with the prior month. Dealers purchased a combined 41,500 ounces of the Mint's 22-karat (91.7% pure) eagles and 24-karat (99.99% pure) buffalos last month, compared with 53,500 ounces in January.

In the mining patch, UBS upped its rating on shares of Meridian Gold(MDG Quote) to buy from neutral, sending the stock up 3.4% in afternoon action.

Stalwart Newmont Mining(NEM Quote) was rising 2.2%, buoyed by the rising metal price.

Turning to base metals, copper contracts closed up 4 cents at $2.71 a pound on the Comex.

As for ferrous metals, Jeffries initiated coverage of Claymont Steel Holdings(PLTE Quote) with a buy rating and a stock price target of $24 a share. Still, the stock was off 1.7% to around $19 in recent activity.