Gold shines up, but melts above $1,200

New York (Nov 25)  Gold futures settled slightly higher Tuesday, yet couldn’t hold its price above the $1,200 level that many traders have watched carefully.

The yellow metal briefly slumped in the wake of a better-than-anticipated reading on U.S. economic growth that appeared to dampen demand for the haven asset. However, the metal recovered after consumer confidence unexpectedly retreated in November, signaling that consumers are less optimistic about the economy.

December gold futures GCZ4, +0.28% settled up by $1.40, or 0.1%, at $1,197.10 an ounce, after briefly punching above the $1,200 mark. Meanwhile, December silver SIZ4, +1.64%  settled higher by 17 cents, or 1%, at $16.55 an ounce.

“Gold continues to digest the gains made so far this month, consolidating in a range within $10.00 of the $1,200 round number,” said Colin Cieszynski, chief market strategist at CMC Markets, in a note on Tuesday. The metal has been rallying in November to date, advancing about 2%. Read more: Glimmers of hope for gold investors

Cieszynski said if gold can climb further, he sees the next resistance area around $1,235.

In other metals, Platinum PLF5, +1.43%   was down $19.80, or 1.61%, to $1,208 and Palladium PAH5, +0.36%  was off about 0.6% , or $4.80, to trade at $789.75.

Source: MarketWatch