(Gold story updated to reflect share price changes and analysts' commentary)
NEW YORK (TheStreet) -- Gold prices reversed their losses Wednesday afternoon amid a spate of physical buying, and as bargain hunters jump in to purchase the yellow metal after it hit three-month lows amid weak consumer confidence numbers that prompted a sell-off in equities, commodities and currencies.
Gold for August delivery was up $2.20 to $1,160.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Wednesday has traded as high as $1,165 and as low as $1,155.60.
was unchanged at $113.48, while the euro was flat at $1.30 against the dollar. The spot gold price Wednesday was up more than $1, according to Kitco's gold index.
"The lowest price in three months, achieved after Tuesday's brutal sell-off, lured some price-conscious Indian buyers back to the bazaars overnight," Kitco analyst Jon Nadler wrote in a daily note. "It might even turn out to be the case that July's gold sales in India end up being the best of the year thus far."
Adrian Ash of BullionVault.com wrote in his morning note that although physical buying has provided gold with support, investors should be wary. Quoting Mitsui's London desk, Ash writes: "Physical demand should support here, but with the third quarter largely absent of major gold buying holidays and festivals in physical centres
such as India, the risk remains to the downside."
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James Moore of the BullionDesk.com agrees that physical buying interest has provided gold with a boost, but "with gold having failed to hold the $1,166 level and with broader risk appetite continuing to rise gold may now look to challenge the 200 DMA of $1149.60."
A World Gold Council report indicates that the Council anticipates India gold demand will likely pick up towards the end of the summer and that there is evidence to suggest jewelery demand in China may have started to pick-up in July.
Daniel Wills of ETF Investors told
he's seen "very modest" redemptions in global gold ETFs, and that investors have only "very marginally" pared their holdings in ETFs to date. Wills says this suggests there's still considerable uncertaintu surrounding the global growth backdrop, particularly regarding Europe.
were falling 18 cents to $17.45, while copper prices were flat at $3.25.Silver chart
Gold mining stocks, a riskier but potentially more lucrative way
were mixed in Wednesday afternoon trading.
was falling 0.2% to $39.96, while
was rising 0.8% to $9.25 and
was rising by 0.5% to $39.64.
-- Reported by Andrea Tse in New York
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