Gold for August delivery at the COMEX division of the New York Mercantile Exchange was tacking on $10.90 to $1,245.80 an ounce. The gold price traded as high as $1,258.70 and as low as $1,232 an ounce, while the spot price was climbing $15.79.
Gold dropped 0.9% last week, highlighted by a nearly $40 drop on Friday, after a stronger-than-anticipated June jobs report and upward revisions to May and April figures sent investors to other asset classes.
Last week's dipping prices have appealed this week to traders who view the yellow metal as oversold, Mihir Dange, options trader at Grafite Capital said in an interview.The Federal Reserve's policy-making minutes emerge Wednesday afternoon, and may add more color to where central bankers stand on the issue of tapering monetary stimulus. The Fed currently is purchasing $40 billion in mortgage-backed securities and $45 billion in longer-term Treasuries on a per-month basis. Many analysts have said they anticipate the central bank to scale back those purchases beginning as early as September. Michael Smith, president of T&K Futures and Options, is one analyst who said he's hearing more about September tapering, but he also said he sees the yellow metal receiving some price support as a safe-haven play in the near future due to growing unrest in Egypt. Gold sometimes functions as an appealing store-of-value hedge against political and economic unrest. Silver prices for September delivery were up 12 cents to $19.16 an ounce, while the U.S. dollar index was up 0.57% to $84.68. Gold mining stocks were mostly higher on Tuesday. Shares of Eldorado Gold (EGO - Get Report) were rising 3.2%, while shares of Gold Fields (GFI - Get Report) were posting a second-consecutive day of hefty gains by 3.1%. Among volume leaders, Barrick Gold (ABX - Get Report) was up 2.2%. Gold ETF SPDR Gold Trust (GLD) was increasing 1% to $120.75 a share, while iShares Gold Trust (IAU) was adding 0.92% to $12.13. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux