Gold price rebounds from two-month lows

New York (Oct 7)  Gold bounced up from two-month lows on Friday, on concerns raised by Russian report that North Korea is preparing to test a long-range missile.

 Spot gold rose 0.54% at USD 1,274.92 an ounce by 4 pm ET. US December gold futures settled up 0.31% at USD 1,277.20. The dollar index fell from a two and a half month high.

 Earlier, bullion fell to a two-month low at USD 1,260.16 an ounce on an upbeat reading of the US unemployment rate and wage growth last month that supported expectations for a further US interest rate hike in December. This pushed the dollar and Treasury yields higher.

 Gold prices have fallen 0.5% this week and are facing their fourth straight week of decline, the metal’s longest run of weekly losses this year.

 Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Shares, have fallen 13.6 tons so far this week, their first weekly outflow in nine weeks and the largest since late July.

 Silver was up 1.1% at USD 16.75 an ounce, after falling to a two-month low at USD 16.30. Platinum was up 0.08% at USD 910.24 an ounce, after falling to the lowest since July 12 at USD 899.50.

HFL