Agoracom

Courtesy of MarketWatch: 

NEW YORK -- Gold futures rallied 1% early Tuesday, gaining as weakness in the U.S. dollar boosted demand for the precious metal. Gold for April delivery gained $8.20 to stand at $926.90 an ounce on the New York Mercantile Exchange.

 
"Some investors and speculators feel that the sell-off is overdone and the metal may have become oversold in the short term,"; said Mark O'Byrne, executive director at Gold & Silver Investments Ltd.

 
"While there may be further consolidation at these levels, gold will likely resume its upward march sooner than expected," he said in a research note.
 

On Monday, gold futures fell $1.30 an ounce in a volatile session. Last week, the precious metal tumbled more than 8%.

 
"Gold is still holding well below last week's highs as market jitters have subsided and some safe-have trading has been unwound," said analysts at Action Economics.

 
In currencies, the dollar lost ground against its major foreign-exchange rivals as fears about the U.S. economy lingered. Weakness in the greenback typically benefits dollar-denominated commodities.
 

The dollar index, which tracks the U.S. currency against a basket of other major currencies, fell 0.8% to 72.32.

 
In economic news, U.S. home prices in 20 major cities declined a record 2.4% in January, falling for the 18th month in a row, bringing prices down a record 10.7% in the past year. According to the Case-Shiller home price index released by Standard & Poor's, prices were down in all 20 cities compared with December.

 
Also on Nymex, silver for May delivery rose 2.3% to $17.51 an ounce, April platinum increased 3% to $1,946 an ounce and June palladium added 2.4% to $447 an ounce. May copper futures also gained, adding 2% to $3.69 a pound.
 

On the broader commodities market, analysts see more short-term volatility in the cards, and some are questioning the fundamentals of the commodity bull market. Read more.
 

"There remain strong apprehensions among participants that a possible sea change is unfolding out in the world of finance and that the 'Great Unwind' will result in less than friendly conditions for many a hitherto white-hot commodity," said Jon Nadler, senior analyst at Kitco Bullion Dealers, in a research note.