Gold futures rise back above $1,700 an ounce on Tuesday
Gold futures rose Tuesday, rebounding as investors regained some appetite for the metal after a drop of nearly 3% in the previous session, to move back above $1,700 an ounce.
Gold for December delivery added $23.10, or 1.4% to $1,701.70 an ounce on the Comex division of the New York Mercantile Exchange. It touched a high of $1,704.
The metal had closed out Monday’s session at a four-week low, dropping 2.7% to begin the holiday-shortened week as investors fled to cash on mounting worries about global debt and the uncertain economic outlook.
But on Tuesday, “bargain-hunting buying has come back into the market, providing a nice rebound that bodes well for gold’s near- and longer-term prospects,” said Brien Lundin, editor of Gold Newsletter.
The latest surrounding Europe’s sovereign-debt crisis as well as the congressional supercommittee’s failure to come to grips with the U.S. deficit will “add headline risk and volatility,” he said in an emailed. “But the only viable option left in either case is greater money creation, and this is the fundamental trend that will continue to drive metals prices higher.”
Some analysts, however, were downbeat about the outlook for gold prices.
“Given the uncertainties facing the euro zone, particularly with the [Moody’s Investors Service credit rating] downgrade threat facing France, the complex remains vulnerable to further pressure as traders continue to lock in profits and maintain sufficient cash liquidity,” said James Moore, London-based research analyst at Fast Markets, in a note.
For now, metal markets found some support in a weaker dollar, as the dollar index , which compares the greenback against a basket of six major currencies, fell to 78.195, from 78.315 late Monday.
The broader metals complex tracked gold higher, paced by silver.
Silver for December delivery added 94 cents, or 3%, to $32.06 an ounce.
December copper , the contract with the most volume, rose 4 cents, or 1.3%, to $3.35 a pound.
January platinum gained $19.20, or 1.2%, to $1,563 an ounce, and palladium for December delivery added $6.65, or 1.1%, to $592.45 an ounce. - MarketWatch
- Gold futures climbed Wednesday - May 9th, 2013
- Gold price in Hong Kong went up 122 HK dollars per tael on Thursday - May 9th, 2013
- BullionVault's Gold Investor Index climbed to a 16-month high - May 9th, 2013
- Gold to extend gain to $1,504-technicals - April 26th, 2013
- U.S. Mint suspends American Eagle gold bullion coins sales after demand surge - April 25th, 2013
- Is gold's price drop just the beginning? - April 25th, 2013
- Gold’s Declining Price Is a Reversion to the Mean - April 25th, 2013
- Gold prices maintained an upward trend for the fourth-straight day to Rs 27,600 per 10 grams - April 25th, 2013