Gold Bounces on Short Covering, Bargain Hunting, Weaker US Dollar Index

New York (July 31)  Gold prices on Friday morning are posting a decent rebound from selling pressure that earlier this week drove prices to a 5.5-year low. Short covering in the futures market and bargain hunting in the cash market, on this last trading day of the week and of the month, are featured bullish inputs for gold and silver markets. The U.S. dollar index has also sold off sharply Friday morning, which is a bullish "outside market" factor for the precious metals markets. December gold was last up $8.80 an ounce at $1,097.50.

Spot silver rose 1% to $14.96. However, platinum was still down $5 at $980, while palladium was off $6.50 at $613.

Source: KitcoNews