The New York gold market Wednesday posted strong gains for a second consecutive day. Gold futures for April delivery rose 30.30 U.S. dollars, or 3.3 percent, to 944.50 dollars an ounce on the New York Mercantile Exchange.
The gold stayed strong despite the dollar managing to rise back into positive grounds at times during the trading session. Gold also remained strong in the face of periodic strength in the U.S. equity market and another decline in the U.S. trade deficit.
The gold market managed to reach the highest level since July 23. The anxiety toward the U.S. economic situation was still running pretty high in the marketplace.
Government securities due in 10 and 30 years remained higher after Treasury's auction of a record 21 billion dollars of 10-year notes drew the most bids in four months, which suggested that the U.S. will be able to continue borrowing at an aggressive pace and to some gold traders that is an inflationary signal.