Gold is seeing more strength Thursday on the back of a weaker U.S. dollar. The precious metal started
after a multi-day losing streak.
settled Wednesday at $1,094 an ounce.
Mixed economic data supported signs of an economic recovery, prompting an uptick in equities and commodities and a slight decline in safe haven assets like the dollar. The
was slipping .25% to $77.73 while gold was rising $7.10 to $1,101.10 an ounce at the Comex division of the New York Mercantile Exchange.
Gold prices are in a tug of war between a stronger U.S. dollar and profit taking -- which weigh on prices -- versus bargain hunting, which creates support. For now bargain hunters appear to have won out and are buoying the precious metal as it dips below the $1,080 level.
Markets close at 1pm E.S.T. for the Christmas holiday and volume is expected to be light, which could lead to short-term volatility.
"Conditions are indeed thin, so the markets are going to show exaggerated moves today as well as any time next week," said Jon Nadler, senior analyst at Kitco.com. "I would caution that whatever we see in these markets for the next few sessions is not to be really considered 'real moves'....I think $1,070 better hold or else we are looking to $1,020-$1,050 area as a possible deeper cleanout."
Gold delivery for February, the most actively traded contract, has traded as high as $1,106.90 and as low as $1,088.30.
were rising 30 cents to $17.32 while copper was adding 4 cents to $3.24.
Mining stocks, a more leveraged way to
, were gaining strength.
were up to $40.23 and $48.04 respectively. Shares of
Freeport McMoran Copper & Gold
were rising to $80.93 while
was holding at $11.76.
The popular physically backed ETF,
SPDR Gold Shares
was rising 1.13% to $107.75 although tonnage has remained unchanged since Monday.
Market Vectors Gold Miners
Market Vectors Juniors
were trading at $46.93 and $25.94 respectively.
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.