Gold prices maintain it's inverse relationship to the U.S. dollar. The
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.
were rising 15 cents to $17.18 while copper was up 6 cents to $3.20.
Mining stocks, a more leveraged way to
, were surging.
were up over 3% at $40.69 and $48.19 respectively. Shares of
were rising 2.50% to $81.95 even after the stock was downgraded from buy to neutral at
. Goldman also initiated
with buy ratings. The stocks were trading higher at $10.04 and $13.40 respectively.
SPDR Gold Shares
were rising .87% to $107.08.
Written by Alix Steel in New York