Gold Price Erases Daily Losses On Short Covering, Bargain Hunting

New York (July 24)  Gold prices in afternoon trading Friday have bounced up to near unchanged after earlier trading solidly lower and hitting a new five-year low of $1,072.30, basis August Comex futures. Short covering in the futures market, heading into the weekend, and bargain hunting in the spot market, are featured. The U.S. dollar index has also moved well down from its daily high and the U.S. stock market is under selling pressure--both favorable developments for the precious metals markets. August gold was last down $0.50 at $1,093.50.

By 3:00pm EST spot gold bounced smartly back to $1097, up $13 on the day. Moreover. spot silver also surged on short-covering to close at $14.73, while platinum jumped $13 to $988 and palladium rose $8 to $626.

Source: KitcoNews