Gold Price Draws Bargain Hunters - TheStreet

NEW YORK (

TheStreet

) -- Bargain hunting supports

gold prices

.

Gold prices settled

Wednesday down $100 from its record high of $1,226 on

global credit fears

, but the precious metal is finding support on the back of a weaker U.S dollar. The

U.S. dollar index

was slightly lower at $75.90. While gold delivery for February was adding $10.40 to $1,131.30 an ounce at the Comex division of the New York Mercantile Exchange. The contract has traded as low as $1,121.80 and as high as $1,137.70.

Although lower prices are making gold attractive to bargain hunters, short term pressure remains as investors seek to shore up their profits before the end of the year. "Current talk is that while we could dip to as low as perhaps 1070 there is some anticipation of bargain hunting....around $1100 level with perhaps a view of trying again to pop prices higher as January gets under way", says Jon Nader, senior analyst at Kitco.com. "Beyond that I would caution that seasonal weakness comes into the picture after the Chinese new year and perhaps the longs need to take advantage of these opportunities sooner rather than later."

>>See how to use charts to avoid losses in a gold selloff.

Silver prices were rebounding 23 cents $17.41 while copper was relatively unchanged at $3.12.

Mining stocks, a more leveraged way to

invest in gold

, have taken a beating this past week. Shares of

Barrick Gold

(ABX)

were flat at $41.28 while

Newmont Mining

(NEM) - Get Report

was up .50% to $52.05.

Freeport McMoran Copper and Gold

(FCX) - Get Report

, Realmoney.com's Alan Farley's

favorite 2009 stock

, was rising .71% to $79.04 while

Yamana Gold

(AUY) - Get Report

was popping 1.28% to $12.68.

SPDR Gold Shares

(GLD) - Get Report

was flat at $110.84. Tonnage was unchanged from Tuesday.

Shares of

Market Vectors Gold Miners

(GDX) - Get Report

were rising 1.11% to $49.32 while

Market Vectors Juniors

(GDXJ) - Get Report

, a basket of small cap miners, was up 1.61% to $26.50.

>>Slideshow: How to Invest in Gold

>>More stories on gold investing

>>See our new stock quote page.

--

Written by Alix Steel in New York

.