After enduring a brutal sell-off this year, gold bugs appear to be making a stand.
Gold prices rose 1% to $1,246.90 an ounce Tuesday after earlier making a run at $1,260.
Of course, gold is still down more than 33% from the all-time highs near $1,900 in September 2011.
But Tuesday's rebound raised hopes on StockTwits that the worst is over for the yellow metal.
The gains come one day before the Federal Reserve releases minutes from its latest policy meeting and chairman Ben Bernanke delivers a speech in Cambridge, Mass.
Gold has been punished as investors brace for the Fed to taper its bond buying as the economy improves.
Many gold bugs argue that the Fed's "money printing" over the past few years will weaken the U.S. dollar and lead to inflation down the road.
But the greenback has strengthened as interest rates rise in the United States. And inflation is expected to remain subdued.
Still, the Fed has a history of overestimating the strength of the economic recovery and critics say the taper talk is premature.
Traders were also calling for a turnaround in mining stocks, which have fallen in sympathy with gold prices.
For an ETF that's down 90% this year, a 5% bounce is a step in the right direction, albeit a small one.
Not a member yet?Sign up now for a free account
|What's killing Sears? Its own retirees, the CEO says|
|Scarborough, Brzezinski say White House used National Enquirer as threat|
|Dyson's $399 hairdryer: Just a lot of hot air?|