NEW YORK ( AppreciateGold.com) -- Spot gold prices are posting decent gains Friday as the physical metal continues to be snapped up current price levels.
Spot gold is currently quoted at $1,400.70, up $8.60 on the session. Gold traded sharply higher during the overnight Asian trading session on strong demand. However, the metal has been trending lower since then and is off about $20 from the high print.
Market observers will be watching today to see if the metal is able to hold the $1,400 level. This would certainly be a step in the right direction and may increase the likelihood of a further rebound in prices. The
SPDR Gold Shares
is trading at $135.37, up .80% as of this writing.
The gold bulls are getting some help from outside markets today. Crude oil is trading slightly higher this morning while the
U.S. Dollar Index
is flat on the session. Although these markets can play a large role in gold prices, for now the story remains physical demand.
Many dealers continue to report inventory shortages or being sold out altogether. Bullion premiums are on the rise. This strong demand may prove to be the catalyst for gold building a base here and a subsequent rally ensuing. Prices as of this writing are at the highest levels of the week, and continuing upside will likely force more short-covering.
The market remains in a technically oversold condition as well. Given the amount of downside the market has seen recently, a vicious bargain-hunting/short-covering rally cannot be ruled out. Such a rally could take prices to the $1,471 area or higher in very short order.
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This article was written by an independent contributor, separate from TheStreet's regular news coverage.