Gold Price Rises, as Does Dollar

Gold finds buyer support on the back of a volatile selloff Friday.
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) --

Gold prices

were rising Tuesday despite U.S. dollar strength.

Gold for February delivery was rising $3.10 to $1,133.60 an ounce at the Comex division of the New York Mercantile Exchange. Prices have traded as high as $1,140.70 and as low as $1,127.50. The

U.S. dollar index

was rising 0.53% to $77.50.

Seabridge's Advantage

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U.S. dollar was rising against the euro

as European debt issues and weak German investor confidence pressured the currency. Gold should have been trading in opposition to the U.S. dollar, resulting in a selloff, but the precious metal was finding support from bargain hunters on the back of

Friday's volatile selloff

. "I just think it's a lot of book squaring going on," says George Gero, vice president of global futures at RBC Capital Markets. "And now for the first time

gold's following the lead of the PGMs which is the platinum group metals."

ETF Securities

recently launched two U.S. physically backed platinum and palladium ETFs,

ETFS Physical Platinum

(PPLT) - Get Report


ETFS Physical Palladium

(PALL) - Get Report

. Both ETFs have seen strong investment demand as traders look for riskier trades in the precious metal sector. Platinum and palladium were continuing their bull run Tuesday at $1,620.90 and $455.35, respectively.

Silver prices

were adding 16 cents to $18.59 while copper was up 4 cents at $3.40.

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Mining stocks, a more leveraged way to

invest in gold

, were mixed.

Barrick Gold


was slipping slightly to $39.36 while other large cap miner,

Newmont Mining

(NEM) - Get Report

was rising 0.71% to $47.91. Shares of

Freeport McMoran Copper & Gold

(FCX) - Get Report

were flat at $84.39 while

Randgold Resources

(GOLD) - Get Report

was adding 1.17% to $82.36.

Lihir Gold


was rising 2.90% to $30.86 after its CEO, Arthur Hood, announced his resignation. Shares of

Yamana Gold

(AUY) - Get Report

were flat at $11.64.

SPDR Gold Shares

(GLD) - Get Report

was relatively unchanged at $111.22. The ETF shed almost a ton on Friday as investors took profits before the long holiday weekend.

>>Slideshow: How to Invest in Gold

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Written by Alix Steel in New York


Alix joined 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.