NEW YORK (TheStreet) -- Gold prices popped double digits and rallied past $1,400 Tuesday on technical trading.
Gold for February delivery surged $22.70 to $1,405.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,407.20 and as low as $1,383.10 during Tuesday's session.
The U.S. dollar index was adding 0.19% to $80.40 while the euro was down 0.51% at $1.30 vs. the dollar. The spot gold price was jumping $21, according to Kitco's gold index.
Despite light volume because of the blizzard in the Northeast U.S. and what is basically a holiday week, gold was finding some last-minute direction headed into the end of the year. A sizable portion of Tuesday's pop was attributable to short covering and physical buying.
The fact that gold prices held up after China hiked interest rates over the weekend triggered a flurry of short covering. Markets had been dreading this move for a while, so not only was the news already baked in but those betting against the gold price were left having to buy back positions at higher prices in the absence of a massive sell-off.
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