Gold Recovers after two days of Declines (GLD, GDX, SLV, IAU, ABX, NEM, AU, HMY, PAAS, CDE, HL, COPX, JJC, RIO, FCX, SCCO)

Published on Wednesday, 07 December 2011 12:41 Written by Paul Oldrini

New York, December 7^th (TradersHuddle.com) - Gold futures bounced back Wednesday after falling for the past couple of trading sessions, as investors are buying the safe-haven on looming uncertainties about the euro zone crisis.

Gold for February delivery was recently up $7, or 0.4%, at $1,738 an ounce on the Comex division of the New York Mercantile Exchange after hitting session high and low of $1,373 and $1,723.60 earlier.

Gold prices were under selling pressure since the start of this week with Tuesday’s losses coming on reports that Standard & Poor’s may downgrade the credit ratings on the sovereign debt of as many as 15 euro-zone countries.

Now investors are eagerly waiting for a meeting this Friday in Brussels to discuss proposals for more rigorous fiscal regulations.  Earlier, there was a report that Germany would against merging the euro-zone’s interim bailout fund, the 440 billion euro ($593.1 billion) European Financial Stability Facility, and the permanent 500 billion euro European Stability Mechanism.

On Tuesday, a Financial Times reported that EU officials were considering the possibility of allowing the bailout fund to remain active when the new 500 billion facility comes into force in 2012.

Elsewhere, the U.S. dollar index was trading almost flat traded at 78.53, not far from the 78.498 level seen in North American trade late Tuesday.

Other metals were also under selling pressure, the January contract for platinum fell $5.70, or 0.3%, to $1,518 an ounce, while prices of silver for March delivery slid 14 cents, or 0.43%, to $32.61 an ounce. Copper was also trading lower by 0.50% to $355.75 /lb.

SPDR Gold Trust (ETF)  (NYSE:GLD) rose 0.28% to $168.68.  Market Vectors Etf Trust  (NYSE:GDX) fell 0.64% to $58.64, iShares Silver Trust (ETF)(NYSE:SLV) lost 0.39% and iShares Gold Trust (NYSE:IAU) added 0.24%.

Barrick Gold Corporation (USA)  (NYSE:ABX) lost 0.76%, Newmont Mining (NYSE:NEM) surged 0.25% and AngloGold Ashanti Limited (ADR)(NYSE:AU) slumped 0.77%. Harmony Gold Mining Co. (ADR)(NYSE:HMY) also fell over 1%.

Pan American Silver Corp. (USA)(NASDAQ:PAAS) lost 1.50 %, Coeur d'Alene Mines (NYSE:CDE) gained 0.8% to $28.98. Hecla Mining Company (NYSE:HL) added 0.15%.

Global X Copper Miners ETF  (NYSE:COPX) is trading higher by 0.74%, iPath Dow Jones-UBS Copper Subindex Total Return ETN  (NYSE:JJC) fell over 1%.

Freeport-McMoRan Copper & Gold Inc.  (NYSE:FCX) is trading higher by 0.10% to $40.57, Rio Tinto plc (ADR)(NYSE:RIO) is trading with a loss of 0.23%. Southern Copper Corporation (USA)(NYSE:SCCO) is falling over 0.10%.