Gold Rebounds from Daily Lows as U.S. Dollar and U.S. Stock Indexes Weaken

New York (Sept 25)  Gold prices have erased early losses and are trading near their daily highs in late-morning trading Thursday. The yellow metal is being lifted on short covering and bargain hunting after hitting a nine-month low in overnight trading. The U.S. dollar index has backed well down from its daily high and the U.S. stock indexes have also come under selling pressure Thursday morning, which is further encouraging the gold market bulls to step up and do some buying. Spot gold was last up $9.12 at $1,223.90 an ounce.

Spot silver was up only 4 cents at $17.65, while spot platinum jumped $12 to $1,319.

By 10:50 am EST the Dow Stock Index was in free-fall down 208 point to 17003. Also stocks were plummeting across the board in the Euro Union.

Source: KitcoNews