Market Insider

Gold bears run for cover as winter cold bites US economy

Will Fed help economy weather the weather?

Winter's chilling effect on the economy is sending gold bears into hibernation.

Gold has been rallying and broke the key level of $1,300 an ounce this week for first time since early November. On Friday, Comex gold futures for April delivery added 1.4 percent.

"I think the bears are temporarily hibernating," said George Gero of RBC. "What they haven't realized is the asset allocators came zooming back. Look at the tonnage going into GLD and IAU. That's what's underpinning the market. You've got momentum traders in here. Over $1300, they come in."