Gold Rallies on Short Covering, Value-Buying

(Kitco News) - Gold prices have pushed to their daily highs and aremoderately up in morning trading Friday. Short covering in the futures marketand some perceived value-buying in the cash market are lifting prices. Also,the U.S. dollar index has weakened a bit more since the start ofU.S. day trading, which is supportive to the precious metals. A high-rangeclose in gold Friday, combined with Thursday's close near the daily high, wouldbegin to suggest the bears are exhausted and that gold prices could then atleast trade sideways in the near term, if not sideways to higher. Augustgold was last up $6.10 at $1,230.20.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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