Gold Prices Push Higher As US Dollar Index Sells Off

New York (Jan 9)  Gold and silver prices markets have erased modest early losses and are trading higher and near their daily highs in late-morning dealings Wednesday. The metals are being boosted by a solid drop in the U.S. dollar index, which hit a 2.5-month low today. Solidly higher crude oil prices that are trading above $51.00 a barrel and at a three-week high are also supporting buying interest in the precious metals. February gold futures were last up $6.00 an ounce at $1,292.00.

By 11:14am EST spot gold was up $7 to $1,290, and spot silver rose 4 cents to $15.66. However, spot palladium slid $2 to $1,335.