US gold futures leaped back from two-week lows on Wednesday
US gold futures leaped back from two-week lows on Wednesday, buoyed by local short covering and light speculative buying sparked by the sharp early downturn in the U.S. dollar.
June delivery gold was up $2.30 at $430 an ounce, after sticking to a range between $427.60 and $430.90 on the New York Mercantile Exchange's Comex division.
Dealers were tracking moves in the dollar and crude oil as gold prices consolidated around $430 an ounce, following the Federal Reserve's interest rate increase yesterday.
"We've had some liquidation in the last few days and we had a large drop in open interest, so maybe the market's feeling a little reassured that some of the longs have exited," said Tom Boustead, a metals analyst at Refco.