Gold Rose A Bit, Dollar Still Firm

Gold futures rose slightly on Wednesday after a recent drop on initial U.S. dollar strength.

The most active April contract settled 20 cents higher at $414.50 an ounce on the New York Mercantile Exchange?s Comex division. The upturn was fueled initially by the fairly strong U.S. dollar, which provoked additional investor liquidation in bullion.

Pre-placed stop-loss sell orders then added extra pressure once prices
slipped below $412 an ounce by automatically upping sell side volumes during the slide.

Some traders argue that another slide in gold prices will likely be seen over the
coming days as the U.S. dollar remains relatively firm versus its rivals and an
unattractive chart pattern continues to emit sell signals for technical or
chart-following funds.

Spot gold found support at $410.25 Wednesday before ending the New York
session around $413.20. The $410 and $408 levels are expected to offer support to the downside, while resistance is deemed in place from $418.