Updated from 12:11 p.m. with settlement prices and comments from Bundesbank press release
Gold for April delivery jumped $13.70 to settle at $1,591.70 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,597.60 and as low as $1,578.80 an ounce, while the spot price was gaining $12, according to Kitco's gold index.
"They said that Europe was starting to have more problems, and that's why the market is starting to work its way back up," said Phil Streible, senior commodities broker at RJO Futures.Streible also said gold options hit a lot of stops over $1,586 an ounce. Silver prices for May delivery added 32 cents to close at $29.17 an ounce, while the U.S. dollar index was dipping 0.06% to $82.57. "Only some of the confidence lost as a result of the crisis has been recovered so far," Bundesbank President Jens Weidmann said in a press release. Investors often view gold as a safe haven asset hedge against economic uncertainties and the yellow metal consistently has attracted buyers on the eurozone's troubles stemming from the global financial crisis and subsequent European sovereign debt crisis. A recent rally in U.S. stocks has weighed down on the precious metals for more than a week as investors moved investments into equity assets for higher returns, but Tuesday saw stocks move modestly lower. The dip in equities was also taking some of the pressure off gold prices. While the euro was retreating slightly against the U.S. dollar on Tuesday, the Japanese yen made progress against the greenback. The dollar was slipping to 96.06 yen from the prior day's settle at 96.29 yen. Investors continue to await Haruhiko Kuroda to take the helm as the Bank of Japan governor. Prime Minister Shinzo Abe's government nominated Kuroda as the majority party hopes the nominee will steer the central bank toward looser monetary policy. "The Bank of Japan's action. I still think that's the biggest catalyst
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV