Modest Advance for Gold Futures

Updated from 3:10 p.m. EST

Gold prices edged higher Wednesday, but speculative buyers likely remained on the sidelines, waiting for confirmation of a potential new uptrend.

Contracts for April delivery of bullion added $6.70 to close at $652.90 an ounce on the Comex division of the New York Mercantile Exchange. The bullion exchange-traded funds, iShares Comex Gold Trust (IAU Quote) and streetTracks Gold Shares(GLD Quote), were rising about 0.5% recently.

"I think hot money will eventually pour right back in just like it fell out last week," says Carlos Sanchez, an analyst at New York-based specialty consulting firm CPM Group. ...