Spot Gold Prices Show Gains

NEW YORK ( AppreciateGold.com) -- Spot gold prices are posting decent gains Friday as the physical metal continues to be snapped up current price levels.

Spot gold is currently quoted at $1,400.70, up $8.60 on the session. Gold traded sharply higher during the overnight Asian trading session on strong demand. However, the metal has been trending lower since then and is off about $20 from the high print.

Market observers will be watching today to see if the metal is able to hold the $1,400 level. This would certainly be a step in the right direction and may increase the likelihood of a further rebound in prices. The SPDR Gold Shares ( GLD) is trading at $135.37, up .80% as of this writing.

The gold bulls are getting some help from outside markets today. Crude oil is trading slightly higher this morning while the U.S. Dollar Index ( DXY) is flat on the session. Although these markets can play a large role in gold prices, for now the story remains physical demand.

Many dealers continue to report inventory shortages or being sold out altogether. Bullion premiums are on the rise. This strong demand may prove to be the catalyst for gold building a base here and a subsequent rally ensuing. Prices as of this writing are at the highest levels of the week, and continuing upside will likely force more short-covering.

The market remains in a technically oversold condition as well. Given the amount of downside the market has seen recently, a vicious bargain-hunting/short-covering rally cannot be ruled out. Such a rally could take prices to the $1,471 area or higher in very short order.

Please visit our Web site for updates on the gold market and useful information for purchasing the physical metal.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Matt Zeman is a trader at Kingsview Financial. He began his trading career as a runner in the grain pits at the Chicago Board of Trade before becoming an arbitrage clerk. Eventually he started trading equity options and stocks. Matt now is a full-time futures broker and also authors a blog for gold investors at AppreciateGold. He has been a frequent guest on CNBC, Fox and Bloomberg, and provides his views on the stock, bond and futures markets for financial media including Dow Jones, the L.A. Times and The Associated Press. Matt is a member of the Chicago Board of Trade, and carries series 3, 7 and 66 licenses.

If you liked this article you might like

Here's What Stocks You Want to Own in the Event of a War With North Korea

Gold, Google, SEC Hack - 5 Things You Must Know Before the Market Opens Thursday

Here's the Hottest New Way to Get Rich With Gold

How to Invest in Unstoppable Gold Prices

Novice Trade: Gold ETF