Gold News & Info

Source: MarketWatch

San Francisco— Gold futures climbed Wednesday to close at the highest level in three weeks as traders touted the metal's investment advantages against a backdrop of economic and political uncertainty worldwide.

"Gold's ability to move above and hold the $560 level gives a positive lift to the metals short-term outlook and suggests a test towards the $568-$572 resistance band is on the cards as investors and speculators continue to be drawn towards gold's safe-haven qualities," James Moore, an analyst at TheBullionDesk.com, said in a note to clients.

The April gold contract climbed to a high of $569 an ounce on the New York Mercantile Exchange — its highest level since Feb. 7 — before closing up $1.90 at $565.80. The contract climbed $6.90 on Tuesday, but posted a decline of $11.60 for the month of February. See April gold chart.

"Gold continues to defy the bears, skeptics and even ardent bulls all of whom continue to pay little or no attention to one of the most powerful factors driving the secular bull market," said Peter Grandich, editor of the Grandich Letter.

He thinks those "powerful factors" include "past gold manipulation that has come home to roost those who are now getting squeezed."

In addition, "the U.S. dollar appears to have made a major top thanks to European and Japanese interest rates set to rise," he said. A weaker dollar boosts demand for gold.

Elsewhere in the metals sector, May silver fell 1.5 cents to close at $9.79 an ounce after an earlier climb to $9.88. May copper tacked on 5.7 cents to finish at $2.2355 a pound.

The June palladium contract added $6.15 an ounce to close at $299.95, but April platinum fell $2.90 to end at $1,051.80 an ounce after climbing almost $20 on Tuesday.

On the supply side, inventories of copper fell 2,170 short tons to 31,026 as of late Tuesday, according to Nymex.

Gold inventories were up 6,053 troy ounces at 7.52 million. Silver supplies were at 127.9 million troy ounces, down 71,669 troy ounces.

On the equities side, shares of metals-mining companies headed higher Wednesday, prompting key indexes that track the sector to gain ground after closing out the month of February with losses of over 10%.