NEW YORK (
Tuesday were tip-toeing higher despite a the U.S. dollar rally and the possibility of higher interest rates.
Gold for June delivery was rising $1.40 to $1,135.20 an ounce at the Comex division of the New York Mercantile Exchange. Prices Tuesday have traded as high as $1,139.60 and as low as $1,123.50. The
was rising 0.54% to $81.53. Gold's spot price was adding over $5, according to Kitco's gold index, as London's physical market reopened after the Easter holiday.
Gold Prices Show Resilience
The U.S. dollar was gaining strength as the euro sank on more
Greek sovereign debt fears
. According to
, Greece wants to alter its IMF/EU financial aid package and is having doubts about the IMF's contribution and the strings that might come along with it. Although the country denied the reports and said it just wants more details on the agreement, investors rotated out of the euro. Greece is under pressure this month to ramp-up financing ahead of coupon payments and maturities.
Also helping the dollar was an interest rate hike from the Reserve Bank of Australia, which raised the benchmark cash rate target 25 basis points. Australia has been trying to stem the flow of free money and monitor inflation. The
has yet to follow suit. In its minutes from March's Federal Open Market Committee meeting, the Fed pledged to keep interest rates low for an extended period of time. Many traders were speculating that Friday's positive unemployment number might prompt higher rates sooner than expected as the economy stabilizes. Higher interest rates will support the U.S. dollar and pressure gold prices as the metal becomes more expensive to buy in other currencies.
After gold's steady rise over the last three trading sessions, investors are also taking some profits, which puts short-term pressure on the precious metal. Prices have been confined to a tight range of $1,080 and $1,130 an ounce, and any break past $1,130 could ignite another wave of consolidation. Many analysts are looking at $1,150 and $1,160 as the key resistance areas. "
Gold has run into profit-taking overnight," says James Moore, analyst at thebulliondesk.com in his daily metals report. "
It may look to consolidate short term, however, the chart picture is looking a little mixed with gold still having to conquer overhead resistance around $1,134/46." Gold started off the session drifting lower but then reversed direction to trade above $1,130 an ounce.
were down 16 cents to $17.95 while copper was down 1 cent to $3.62. Platinum was giving up some of its gains and was slipping over $5 to $1,704. Moore says, "We expect dips
in platinum ... will continue to be viewed as buying opportunities as increased investment and industrial demand tighten the supply/demand balance."
Mining stocks, a more leveraged way to
, were mixed.
was slightly lower at $39.50 while
was down 0.48% to $53.55. Other large cap miners
were trading at $17.85 and $38.54, respectively.
were up 0.64% to $40.58 while
was up slightly at $87.77.
was also rising 1.17% to $10.35.
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.