NEW YORK (TheStreet ) -- Gold prices were rising fast as they shrugged off an interest rate hike from South Korea and investors bought gold as protection against resurfacing Eurozone debt fears.
Gold for April delivery was adding $7.90 to $1,435.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,436.80 and as low as $1,423.20 while the spot gold price was adding $5.30, according to Kitco's gold index.
Precious metal buying had a murky start Wednesday as oil prices took a break after the American Petroleum Institute said Tuesday that inventories rose 3.8 million barrels last week. Worries that Middle East and North African unrest will choke oil supply and drive prices higher were waning. South Korea's central bank also raised interest rates by 25 basis points, the move was expected.
Investors had been buying gold and silver as protection against an explosion of violence and oil disruption in the Middle East. That underlying factor is losing its luster, which was hurting metals' rally. Picking up the slack, however, was a weak bond offering in Portugal.
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Portugal raised €1 billion until September 2013 but had to pay the price. The average yield rose to 5.99% from 4.08% at the previous auction. Moody's also struck at Greece again, downgrading the country's debt on Monday and then downgrading its rating on 6 of the nation's banks.
The news comes as European Union leaders are trying to work out a permanent bailout fund and rules for how to secure the cash like rapid decreases in debt and spending. Leaders will be in a series of meetings until the end of March.
