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.