17/12 Gold recovers on bargain-hunting, weaker dollar

English.news.cn   2011-12-17 04:54:40

CHICAGO, Dec. 16 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange staged a modest recovery on Friday, ending a four-session long losing streak, as investors digested this week's slump as an opportunity to bargain hunt. A weaker dollar also helped add to the positive tone.
The most active gold contract for Feb. delivery climbed 20.7 dollars, or 1.3 percent, to 1,597.9 dollars per ounce.
Euro rallied against the U.S. dollar on Friday, after the Italian government easily won a confidence vote on its austerity measures, while a referendum in Germany on the euro zone's planned future rescue mechanism, may have failed by a small margin to reach the necessary quorum to be valid.
Dollar had given back some of its recent gains on Friday, as demand for safe havens dwindled, clearing the way for gold to gain. Gold, which is denominated in dollars, appear cheaper to holders of other currencies, when dollar lost ground.
A trader pointed out that Feb. gold traded as high as 1,718.60 dollars per ounce last Friday, and it traded as low as 1,562.5 dollar this Thursday, which is a 4-day range of 156.10 dollars from the high to the low.
Market participants said that while gold's safe haven appeal has diminished as investors prefer dollar to gold after gold markets had seen massive volatility in the past three months.
But, as gold fell below 1,600 dollar an ounce, it has become an attractive investment for those who believe gold will perform best among commodities next year, as traditional physical demand continues to grow, and central banks continue adding to their gold reserves.
Silver for March delivery rallied 39.7 cents, or 1.4 percent, to 29.671 dollars per ounce. Platinum for Jan. delivery added 10.3 dollars, or 0.7 percent, to 1,417.3 dollars per ounce.
Editor: yan

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