Gold Rises higher in short-covering action

New York (Dec3)   Gold prices nudged higer from 6-year lows on Thursday, even as Fed Chair  Janet Yellen  continued to lay the groundwork for a rate hike later this month.

While December is a "live option," Fed rate increases are "more likely to follow a gradual path," Yellen told  Congress  today.

Disappointing US economic data put a floor under prices. The  Institute for Supply Management  released a report this morning showing that the pace of growth in US service sector activity slowed more than expected in November.

Overseas,  European Central Bank  President  Mario Draghi  announced an extension of the  ECB's  asset purchase program until March of 2017,

Feb. gold settled at  USD1,061.20  /oz on Comex, up  USD7.40  , or 0.7%.  Spot silver edged higher 13 cents to $14.11, while platinum jumped $13 to $847 as palldium surged $8 to $539.

Traders are looking ahead to the crucial November jobs report, due to be made public tomorrow morning.

Source: KitcoNews