Gold futures were rising slightly Thursday as markets searched for direction. Futures were climbing $2.40 to $898.10 an ounce at the Comex division of the New York Mercantile Exchange. Silver prices were rising 13 cents to $12.50 an ounce, and copper was trading flat at $2.07 a pound. Rising gold prices indicate that investors are clinging to their safe-haven investment and preparing for more negative news, despite positive earnings results from Apple ( AAPL) and other tech stocks.
"There is still a lot of concern around," says William Adams, analyst at thebulliondesk.com. "With the banks learning about the results of the stress tests Friday, people might be nervous ... and buying some gold into that." Adams believes gold is looking technically better after finding a bottom at $865. "Lower prices attracted a bit of trade buying," he says. The main question for gold bugs is when the precious metal will break through $900. Adams thinks futures will "trade at the $865/$900 level for a bit longer ... there is more room on the upside in equities and industrial commodities that will take the shine off gold." But that trend might not last. Some analysts believe global markets are in a bear market rally and that banks could see more losses. The overall economic outlook is unsettled enough to eventually spur a rebound in gold prices. In gold stocks, Newmont Mining ( NEM) was rising 1.5% to $38.37, while Barrick Gold ( ABX) was up 3.7% to $29.05. Shares of Yamana Gold ( AUY) were climbing almost 4.5% to $7.68. Agnico-Eagle Mines ( AEM) was also rising 4.5% to $46.53, and Gold Shares ( GLD) exchange-traded fund was slightly higher at $88.29.