Gold Prices Hold Gains Despite Rising Positive Sentiment

Source:

"The precious metal is holding on to the gains made Wednesday after a sharp sell-off in the U.S. dollar."

Gold prices are holding on to gains despite a stronger U.S. dollar and rising equity markets on Thursday afternoon.

It has been a relatively quiet day for gold as prices remain in a fairly tight range. The precious metal is holding on to the gains made Wednesday after a sharp sell-off in the U.S. dollar. At the start of the North American session, gold prices showed a strong rally, hitting daily highs at $945.55 an ounce. Although prices are well off their highs, they remain strong, hovering around $937.

Mike Glaser, futures broker at LaSalle Futures, said gold appears to be stuck in a broad range, with investors buying at around $900 and selling at $960. He said he expects the trend to continue.

According to some strategists, gold could still be reacting to misinterpreted comments from Treasury Secretary Timothy Geithner on Wednesday. Media outlets reported that he was "open" to exploring the Chinese proposal to move towards an SDR currency system and away from the U.S. dollar as a reserve currency.

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