Gold futures continued to rise Tuesday as disappointing first-quarter results increased demand for the metal as a safe haven.
Futures were rising $7.20 to $894.20 an ounce at the Comex division of the New York Mercantile Exchange. The contract has traded as low as $886.90 and as high as $895.10 so far during the session.
Silver prices remained unchanged at $12.13 an ounce, and copper was slipping 8 cents to $2.04 a pound.
"Going forward you probably aren't going to see many companies fair as well as they did last year. We are going to see weak economic data over the next several months
and unemployment is expected to rise. You will see investors move to safe haven assets", says Carlos Sanchez, associate director of research for CPM Group.
If the bad news pressures equities, gold will move higher, but will likely stay below the $900 level. Increased scrap selling and technicians who operate in a trading range below $900 should keep the price from climbing to the mid-$900s, Sanchez says.
Two possible catalysts for gold could be the
market commentary, which will be released after policymakers meet next week, and the first-quarter GDP number. A lower price keeps physical demand strong. India continues to buy ahead of its festival next week. If gold futures jump to $920 or higher, physical demand could shrivel up, Sanchez believes.
In gold stocks,
was rising slightly to $39.95, and
was up 1.6% to $8.01.
was ticking up to $29.65 after an analyst from Thomas Weisel upgraded the stock to overweight from market weight.
was trading up almost 1% at $48.09, and
exchange-traded fund was rising 1% to $87.81.
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.