Dollar Lifts Gold Price - TheStreet

NEW YORK (TheStreet) - Gold prices get an afternoon lift from the U.S. dollar.

Gold prices maintain it's inverse relationship to the U.S. dollar. The

U.S. dollar index

hit a 3 1/2 month high Tuesday which

pushed prices firmly under $1,100

. On Wednesday, the dollar was losing ground falling .61% to $77.82 which caused gold to pop $7.40 to $1,094.10 an ounce. Volatility is expected to continue until 2010 on light volume and more long selling. "In the run-up to year-end we expect gold to see further pockets of long liquidation, potentially pulling back to the $1,050 area" says James Moore, analyst at thebulliondesk.com in his daily metals report.

Gold delivery for February, the most actively traded contract, has traded as high as $1,096.80 and as low as $1,080.10 at the Comex division of the New York Mercantile Exchange.

Silver prices

were rising 15 cents to $17.18 while copper was up 6 cents to $3.20.

Mining stocks, a more leveraged way to

invest in gold

, were surging.

Barrick Gold

(ABX)

and

Newmont Mining

(NEM) - Get Report

were up over 3% at $40.69 and $48.19 respectively. Shares of

Randgold Resources

(GOLD) - Get Report

were rising 2.50% to $81.95 even after the stock was downgraded from buy to neutral at

Goldman Sachs

. Goldman also initiated

Harmony Gold

(HMY) - Get Report

and

Gold Fields

(GFI) - Get Report

with buy ratings. The stocks were trading higher at $10.04 and $13.40 respectively.

Shares of

SPDR Gold Shares

(GLD) - Get Report

were rising .87% to $107.08.

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Written by Alix Steel in New York

.