Gold Extends Early Gains to Trade Sharply Higher

Gold is trading sharply higher and near the daily high late Monday morning, extending moderate early gains. Short covering, bargain hunting and some safe-haven buying are featured, after prices last Friday fell to a nearly three-year low. The civil unrest in Egypt is prompting the safe-haven demand for the yellow metal. Technical buying is also featured after pre-placed buy stop orders were triggered on the rally.

Gold is still technically weak, overall, and the bulls still have heavy lifting to do to suggest a fresh price uptrend can be sustained.

By noon ET spot gold last traded up $23 to $1,258, while silver tacked on 10 cents to $19.76.  However, palatinum soared $38 to $1377, as palladium went ballistic up $25 to $684.