Gold Futures Rally on Bargain Hunting and Short Covering

Gold futures surged on Wednesday, initially driven by bargain hunting and short covering, but then extending gains as equities faltered. The April gold contract rose $14.80 to settle at $910.70 an ounce on the Comex division of the New York Mercantile Exchange. Market analysts attributed the rally to investors' doubts about a sustained economic recovery, which could lead to future flights to quality and a stronger demand for the precious metal.

Key Takeaways:

• Gold futures rallied by $14.80 to settle at $910.70 an ounce on the Comex division of the New York Mercantile Exchange.
• The metal held support at the $894-$895 level, despite initial weakness in equities.
• Market analysts, including Michael Gross of OptionSellers.com and Stephen Platt of Archer Financial Services, attributed the rally to investors' doubts about a sustained economic recovery.
• The U.S. dollar's weakness also supported the gold price, with the ICE Futures U.S. dollar index down over 0.93%.
• Silver futures rose along with gold, gaining 26 cents to settle at $12.80 an ounce.
• Nymex April platinum rose $13.40 to settle at $1,057.20 an ounce, while June palladium gained $2 to settle at $199.10 an ounce.

Statistics:

• Gold futures rose by $14.80 to settle at $910.70 an ounce.
• The Dow Jones Industrial Average fell 24.05 points to 6,902.44 shortly after gold closed.
• The ICE Futures U.S. dollar index was down over 0.93% shortly after gold closed.
• Silver futures gained 26 cents to settle at $12.80 an ounce.
• Platinum futures rose $13.40 to settle at $1,057.20 an ounce on bargain hunting and short covering.
• Palladium prices were influenced by declining equities, with June palladium gaining $2 to settle at $199.10 an ounce.

Sources:

• Dow Jones Commodities News via Comtex
• OptionSellers.com (Michael Gross)
• Archer Financial Services (Stephen Platt)
• FuturesOne (Sterling Smith)
• Nymex
• ICE Futures