Gold Rises to $1,265.20 an Ounce in New York

Gold prices increased Tuesday due to short covering as investors continue to be concerned over when the U.S. Federal Reserve will taper the stimulus program, MarketWatch reported.

Gold futures for February delivery on the Comex in New York were up $31 today from the previous session to hit $1,265.20 an ounce.

The rise in gold prices is “no doubt due to a large extent to speculative financial investors covering their short positions, having previously built up record-high bets on falling prices,” wrote analysts at Commerzbank AG in a note to clients, MarketWatch reported.

In early trading today, gold neared a one-week high, Reuters reported. Spot gold hit $1,245.06 an ounce, up $4.98.