Gold firmer in choppy trading after hitting 9-mo.high
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(Kitco News) - Gold prices are modestly higher in choppy, two-sided trading at midday Tuesday, after hitting a nine-month peak overnight. The market is seeing some normal backing and filling on the charts today. Still, the technical posture for gold remains fully bullish. February gold was last up $4.50 at $1,933.20 and March silver was up $0.176 at $23.73.
The recent depreciation in the U.S. dollar on the foreign exchange market is partly responsible for gold's recent surge. However, longtime market watchers are wondering if metals traders sense the geopolitical landscape will significantly heat up in the coming months. An interesting news headline this morning from Barron's: "A summer of sovereign debt crises could be coming. Is the Fed ready?" Meantime, a headline from the Wall Street Journal today reads: "Hopes for a markets recovery hinge on big drop in inflation." In other words, if inflation heats back up again, the general marketplace would be in big trouble. Maybe gold traders are sensing that scenario may occur, too.
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