Gold up on short covering

Gold futures on the COMEX division of the New York Mercantile Exchange went up Wednesday as technicals caused short-covering after gold fell to an 11-week low.

The most active gold contract for December delivery rose 5.3 U. S. dollars, or 0.42 percent, to settle at 1,270.3 dollars per ounce.

Gold futures opened higher Wednesday as Russian President Vladimir Putin said he could reach an agreement to end fighting in Ukraine within a week, but Ukraine rejected the statement.

Some analysts say that U.S. employment data may be positive Friday, which, in combination with a lack of physical demand for gold, could trigger another fall in the precious metal's price.

Another factor capping gold's gains was a report released by the U.S. Commerce Department Wednesday showing that new orders for manufactured goods rose by a record 10.5 percent as demand for transportation equipment increased. The department also revised June's numbers to show a 1.5 percent increase instead of the previously reported 1.1 percent rise.

Silver for December delivery gained 3.7 cents, or 0.19 percent, to close at 19.189 dollars per ounce. Platinum for October delivery gained 3.6 dollars, or 0.26 percent, to close at 1,412.5 dollars per ounce.