NEW YORK (
) -- Gold ended the Comex pit session slightly higher and near the highs of the day.
After what appeared to be a false upside breakout, gold sold off a bit and fell back into the previous trading range. Prices spent a little time in the prior range but were able to recover and close back above Tuesday's breakout level of $1,585.
Old resistance becomes new support, and the fact that the market was able to essentially hold the $1,585 area should be encouraging to the bulls.
The U.S. dollar index $DX saw some profit taking today, and that is likely the primary factor in gold's bounce today. After trading sharply lower again early in the session, the euro reversed and was once again able to regain its composure and close above the key 1.30 level. A close above $1,600 is needed by the gold bulls to keep any bullish momentum going. The February low at $1,554 is still the level the bears need to take out to drive prices lower.
Please visit our Web site for updates on the gold market and useful information for purchasing the physical metal.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.