• Gold Back Above $1,400 As Dollar Wobbles


    Gold Back Above $1,400 As Dollar Wobbles

    Gold prices jumped back above $1400 an ounce Tuesday, holding onto strong early gains even as the dollar fought back to trim early losses.
    As trading volume picked up from Monday, February gold rose $22.70 to a two-week high of $1,405.60.

    Today's gains may have been driven by pent-up demand, as Wall Street got back to business after cripplingsnow storms extended the Christmas break for many employees on Monday.

    With investors favoring gold over the dollar and euro as a safe haven asset, analysts are predicting gold prices will hit new record highs in 2011.

    Few have been willing to fight the upward trend on commodities, keeping bullion near a record intraday high above $1,430.

    Spot silver also moved higher on Tuesday, edging above $30 an ounce. March copper added to Monday's record closing price.

    In troubling economic news from the US, home prices fell in October, according to a closely watched Case-Shiller report, fueling fears the housing market may be headed for a double-dip.

    Consumer confidence unexpectedly deteriorated in the month of December, the Conference Board revealed in a report on Tuesday, with the consumer confidence index pulling back off the five-month high it set in November.

    The Conference Board said its consumer confidence index fell to 52.5 in December from an upwardly revised 54.3 in November.

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