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(Kitco News) - Comex gold futures are trading sharply higher in midday dealings Tuesday, extending earlier gains as the market place has quickly become disenchanted with the prospects of Wednesday's European Union leaders meeting producing any credible or concrete results on dealing with the EU debt and financial crisis. A suddenly canceled EU finance ministers meeting that was scheduled for Wednesday set off the fresh market place concerns. Such has prompted fresh safe-haven demand for gold. The precious yellow metal has rallied strongly despite a solid rally in the U.S. dollar index, which is also gaining support from safe-haven demand. December gold futures have pushed right up to strong technical resistance at the $1,705.40 level, and a push above that level would likely trigger fresh buy stop orders to then send prices even higher. December gold last traded up $49.00 at $1,701.00.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

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