Gold Prices Firm
NEW YORK (
) --
were tiptoeing higher Wednesday as risk appetite for commodities improved.
Gold for April delivery was rising $5.50 to $1,142.90 an ounce at the Comex division of the New York Mercantile Exchange. Gold has traded as high as $1,145.80 and as low as $1,132.80. The
was slipping 0.77% to $79.87.
Investors' risk appetite supported gold prices after a less-negative
. ADP said the private sector lost 20,000 jobs in February, which was in line with expectations and is an improvement from January's 60,000 job losses. Traders are still relatively cautious headed into Friday's U.S. nonfarm payroll report, which is tempering gold's upside.
Gold Gains Traction
Also helping risk sentiment was news from Greece that the country will implement more severe money-saving measures totaling $4.8 billion euros or $6.54 billion. The aggressive actions, unpopular with the public, include a rise in VAT and a cut in state salary bonuses. The EU is pressuring Greece to dramatically reduce its debt levels before any European financial aid is pledged.
"We have seen risk sentiment improve," argues Nicholas Brooks, head of research and investment strategy for ETF Securities. "Investors are starting to feel a little bit more comfortable about the situation in Greece. Some of the macro data out recently, particularly on the employment front, is a little better ... and we
saw the dollar come off a bit after its recent strength and that is driving up ... the metals ... I do think it's possible that this year we could see gold move back through to a new high"
were rising 21 cents to $17.27 while copper prices were up 1 cent to $3.42.
Mining stocks, a more leveraged way to
, were firmer.
Barrick Gold
(ABX)
was rising 2.20% to $40.34, while
Newmont Mining
(NEM) - Get Report
was higher by 1.04% to $52.24. Shares of
Goldcorp
(GG)
were up over 2.50% to $40.24 after the stock received an upgrade at Canaccord Adams from hold to buy.
Kinross Gold
(KGC) - Get Report
was rising 1.64% to $19.26.
Shares of
Freeport McMoRan Copper & Gold
(FCX) - Get Report
were up 2.35% to $79.81 while
AngloGold Ashanti
(AU) - Get Report
was rising 2.46% to $37.89.
The popular physically backed ETF
SPDR Gold Shares
(GLD) - Get Report
was rising slightly to $111.91. The ETF added 4.57 tons on Tuesday as investors bought gold as an alternative asset.
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--
Written by Alix Steel in New York
.
Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.