Gold, Silver Prices Edge Higher to Recoup some of their Recent Losses

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Gold prices were headed higher Wednesday, with investors attributing its modest rise in the session to an attempted recovery from recent selling in the precious metal and its sister commodity silver.

Gold is range trading and at the moment testing out support at 1,830, said Ross Norman, chief executive officer of Metals Daily, told MarketWatch. Its price action, while silver rallied, was muted suggesting sentiment in the broader complex was skeptical of silver. By that I mean the premise that there was a large silver short out there there isnt and the proof of that is that there was no short covering rally.

Precious metals settled sharply lower a day ago after the Commodity Futures Trading Commission and the CME Group said they would monitor and tighten restrictions on trade in silver, and gold, with dealers blaming individual investors for using socialmedia platforms like Reddit to drive futures prices in metals higher.

On Comex, April gold edged up by 2.20, or 0.1, to 1,835.60 an ounce, after the metal tumbled 1.6 on Tuesday.

Silver futures for March delivery tacked on 55.8 cents, or 2.1, 26.96 an ounce, following an over 10 decline for futures in the previous session. Prices on Monday settled at their highest in about eight years.

Wednesdays rebound, however, is viewed by some market strategists as limited by a firmer dollar and rising bond yields, which can serve as potential headwinds for the assets in the short term.

It will be interesting to see if the…

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