Gold prices bucked the prevailing downdraft to knock out some relatively sizeable gains on Wednesday, as equity markets showed further signs of weakening.
At last check, gold for December delivery GCZ4, +0.47% was up $8.60, or 0.7%, to $1,257.00 an ounce. December silver SIU4, +1.04% jumped 18 cents, or 1%, to $19.02 an ounce.
A day earlier, gold lost ground for a second straight session on concerns that the Federal Reserve may get to tightening sooner than many had expected.
James Hyerczyk, an analyst at FX Empire, said a squeeze could be on soon.
“Because of the prolonged move down … and the oversold conditions, traders should watch for signs of short-covering,” he said. “The inability to follow through to the downside, an inside move or a trade through $1,258.90 will be signs that a short-term bottom has been reached.”
Elsewhere in metals trading, December palladium PAZ4, -0.49% rose $3, or 0.4%, to $863.45 an ounce, while October platinum PLV4, -0.01% tacked on $2.60 to $1,388.80 an ounce. High-grade copper for December delivery HGZ4, -0.06% didn’t move at $3.10 a pound.