Gold Prices Pause on Greek Bailout Hangover
By Ross Tucker - 02/22/12 - 11:21 AM ESTTheStreet ) -- Gold prices were wavering Wednesday as investors found few triggers to continue buying after Tuesday's Greek bailout-driven surge. Gold for April delivery was falling $1.20 at $1,757.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,761.80 and as low as $1,750.70 an ounce while the spot price was down $5.90, according to Kitco's gold index. Silver prices were falling 20 cents at $34.22 an ounce while the U.S. dollar index was up 0.12% at $79.201. On Tuesday, Greece secured a second, €130 billion bailout package -- helping push the Dow briefly above the key psychological 13,000 mark. Gold for April delivery closed up $32.60 at $1,758.50 an ounce.
"US-based bullion dealers we polled over the past week report 'quiet' conditions and only 'sporadic' telephone call and transaction volumes, with would-be buyers of gold and silver only making an appearance in the wake of substantial rallies and not really buying on the dips," said John Nadler, senior metals analyst with Kitco Metals. Nadler also noted a Reuters report suggesting that India -- the world's largest gold consumer -- could see gold imports fall as much as 35% this year as inflation eases and stocks rally. The Indian government expects gold imports to come in at $38 billion in 2012 compared with an estimated $58 billion this year. Gold mining stocks were trading mixed Wednesday. Kinross Gold
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