Gold Prices Inching Higher

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"Gold, for now, seems to have stemmed its furious selloff from Tuesday."

Gold prices were rising slightly Wednesday after shedding 1.5% of their value on a broad market selloff the day before.

Gold for December delivery was adding $2.90 to $1,341.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Wednesday has traded as high as $1,344.60 and as low as $1,330.10.

The U.S. dollar index was losing 0.34% to $78.94 while the euro was rising slightly to $1.35 vs. the dollar. The spot gold price was down $0.10, according to Kitco's gold index.

Gold, for now, seems to have stemmed its furious selloff from Tuesday as investors stepped in to buy gold at lower prices. But gold prices will probably stay in no-man's land as uncertainty in Ireland weighs on the euro, helps the dollar and caps any gains in gold.

Promising to weigh on gold prices is the threat of China raising interest rates to fight inflation. The U.S. Department of Labor also said Wednesday that the core Consumer Price Index, an inflation indicator, was unchanged in October month over month. Possible decreasing inflation in China and no inflation in the U.S. are hurting investors who bought gold as an inflation hedge.

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