Gold Hovers at Flatline as Traders Prospect
Gold for June delivery at the COMEX division of the CME was adding $1.10 to $1,435.40 an ounce. The gold price traded as high as $1,444.90 and as low as $1,419.70 an ounce while the spot price was adding $5.20, according to Kitco's gold index.
Gold has retraced from a bottom it reached in mid-April after a historic two-day selloff that erased about 13% of the yellow metal's value. But the previous three trading sessions have seen gold break below support levels that have left traders wondering when prices may stabilize.
Despite last month's collapse, physical demand in China, India and central banks has helped push the price of gold higher and off its multi-year low.The U.S. dollar was also little changed on Tuesday; the U.S. dollar index was ticking higher by 0.06% to $83.27. "Physical demand, even though it is important to the price of gold, it's much more the dollar versus currency markets when it comes to the real price of gold," said Eric Zuccarelli, an independent commodities trader at the New York Mercantile Exchange. Silver prices for July delivery was slipping 19 cents to $23.51 an ounce. Gold mining stocks were mixed on Tuesday. Shares of Gold Fields (GFI - Get Report) were dropping 1.8%, while shares of Yamana Gold (AUY - Get Report) were adding 0.84%. Among volume leaders, Barrick Gold (ABX - Get Report) was up 0.64%. Gold ETF SPDR Gold Trust (GLD) was increasing 0.1% to $138.57 a share, while iShares Gold Trust (IAU) was up 0.07% to $13.92 a share. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
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