NEW YORK (TheStreet) -- Gold prices Wednesday were volatile as bargain hunters bought gold at discount prices after an earlier sell-off.
Gold for June delivery was adding $5.60 to $1,174.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Wednesday has traded as high as $1,177 and as low as $1,156.20. The U.S. dollar index was giving up some of its gains and rising only 0.62% to $83.82 while the euro continued its slump falling 0.83% against the dollar. The spot gold price was up over $2, according to Kitco's gold index.
The euro plummeted past its one-year low of $1.30 as European sovereign debt fears plagued the market. Despite the IMF/European Union's joint 110 billion euro bailout for Greece, investors panicked as the debt crisis threatened to spread to Spain and Portugal and three were found dead after a series of protests in Greece. Markets nosedived Tuesday with the Dow Jones Industrial Average falling over 200 points as investors sold their gold to raise cash.
Gold prices had been slipping earlier Wednesday but bargain-hunters came out in full force and bought the precious metal after gold's selloff. Gold is an appealing investment during times of financial crisis and currency debasement as a form of money that doesn't lose value. Analysts expect gold's tug of war to continue tempering gold's run to $1,200 an ounce. Prices will be torn between investors' need for cash and bargain hunting, profit-taking and good buying opportunities."A slight recovery ensued in the first half-hour of trading and observers were on the lookout for possible bargain-hunters to make an appearance," says Jon Nadler, senior analyst at Kitco.com in his daily metals report. But a stronger U.S. dollar hurt gold's appeal as the metal became more expensive to buy in other currencies. "Gold