NEW YORK (TheStreet) -- Gold prices were jumping Tuesday as traders viewed the market as oversold and as a good opportunity to buy the yellow metal at lower levels.

Gold for February delivery at the COMEX division of the New York Mercantile Exchange was popping $30.60 to $1,264.80 an ounce. The gold price traded as high as $1,267.50 and as low as $1,237.40 an ounce, while the spot price was adding $25.93.

"The market continues to bounce higher from the oversold positions of last week -- a week to the day we suggested that the market was well ahead of itself and taking a position," Peter Hug, global trading director at Kitco Metals, wrote Tuesday in a note to investors.

Tuesday's price move is similar to the surge gold posted Dec. 4 as a short-covering rally boosted the price by about $26 that day. Gold plummeted the following day as market participants shorted the market.

"The market is aggressively short, but the gold market has not confirmed a breakout," Hug wrote in Tuesday's note.

Silver prices for March delivery were climbing 63 cents to $20.34 an ounce, while the U.S. dollar index was dropping 0.32% to $79.90.

Gold mining stocks were mostly higher on Tuesday, in line with gold futures. AngloGold Ashanti (AU) was one of the top gainers in the space, soaring 7.3% to $13.03 a share. Barrick Gold (ABX) was gaining 5.9% to $16.94

Gold ETF SPDR Gold Trust (GLD) was up 2% to $122.06, while iShares Gold Trust (IAU) was increasing 2.1% to $12.28.

-- Written by Joe Deaux in New York.

>Contact by Email.

More from Gold

Commodities Surge as Energy Stocks Lead Market Higher

Commodities Surge as Energy Stocks Lead Market Higher

Enjoy This Market Hoorah Before the Worst Correction of Your Lifetime

Enjoy This Market Hoorah Before the Worst Correction of Your Lifetime

With Everything Going On, Why Is Gold Not Higher?

With Everything Going On, Why Is Gold Not Higher?

Kevin O'Leary: Stay Away From Gold Miners, Hold Bullion

Kevin O'Leary: Stay Away From Gold Miners, Hold Bullion

Surprisingly, Higher Gold Prices Aren't Being Driven By Fears of War With Russia

Surprisingly, Higher Gold Prices Aren't Being Driven By Fears of War With Russia