NEW YORK ( TheStreet ) -- Gold prices rose Wednesday along with the dollar as the two resumed their safe haven status. Gold for April delivery added $10.40 to close at $1,728.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,739.20 and as low as $1,720.30 an ounce while the spot price was adding $6, according to Kitco's gold index. Silver prices were 4 cents higher at $33.39 an ounce while the U.S. dollar index was up 0.23% at $79.59.
It was a good day for gold with the metal closing up XX%. Gold first got a lift from a stronger euro after news broke that France's economy grew 0.2% in the first quarter and 1.4% versus a year ago. The numbers surprised to the upside as did China's announcement that it would continue to buy euro backed assets like bonds from the European Financial Stability Fund, temporary bailout fund, or European Stability Mechanism, permanent bailout fund.
other period, but another three years seem too long to stay on hold with negative real rates if claims break that critical 350,000 mark." On the other end of the spectrum, the Federal Reserve in its latest FOMC minutes said that a few members see that more asset purchase, or quantitative easing, would be warranted this year. More money in the system coupled with low rates is typically good for gold as a safety play against a weaker currency. Lastly gold will have to contend today with big named fund managers dumping some gold positions in the fourth quarter. John Paulson sold 2.9 million shares of the SPDR Gold Shares ( GLD) but still holds 17.3 million and is the largest holder. The move does help explain gold's 5% selloff during the same time period. He also sold some shares in gold stocks like AngloGold Ashanti ( AU) and Gold Fields ( GFI), but ramped up his shares in NovaGold ( NG), Randgold ( GOLD) and Barrick Gold ( ABX) as well as some others. George Soros, on the other hand, added 37,100 shares to his GLD position, which is still small at 85,450 shares. On the whole JPMorgan ( JPM) was a big seller of gold dumping positions in the GLD as well as the iShares Gold Trust ( IAU) for a total of 6.1 million shares, while Bank of America ( BAC) added 8.3 million shares combined to both ETFs. Gold mining stocks were mixed Wednesday. Kinross Gold ( KGC) was up 0.54% at $10.45 while Randgold Resources ( GOLD) was 0.4% lower at $111.82. Other gold stocks, Agnico-Eagle ( AEM) and Eldorado Gold ( EGO) were higher at $34.38 and $13.39, respectively. Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel.