Gold sees more short covering, perceived bargain hunting

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Gold sees more short covering, perceived bargain hunting
France Dernières Nouvelles,France Actualités
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Gold sees more short covering, perceived bargain hunting

Gold prices are higher and silver slightly up in midday U.S. trading Wednesday. Short covering from the shorter-term futures traders and perceived bargain buying by the staunch bulls are featured after gold hit a nine-week low on Tuesday and silver a nearly four-month low. Sharp losses in the U.S. dollar index at midweek are also supporting buying interest in the metals markets. April gold was last up $8.70 at $1,845.20 and May silver was up $0.029 at $21.10.

The key outside markets see the U.S. dollar index solidly lower. Nymex crude oil futures prices are lower and trading around $76.50 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.985%. Bond yields are on the rise, which is a bearish element for the gold and silver markets.

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