Gold futures close back above the $1,200-an-ounce level
Bullion metals ended higher at Comex on Monday, 06 October 2014. Gold futures gained ground on Monday, closing back above the $1,200-an-ounce level as the dollar rally took a respite. A rallying U.S. dollar has whacked gold and other dollar-priced commodities in the past three months, but traders think the greenback's gains are overdone, and they sound upbeat on gold looking into next year.
Gold for December delivery rose $14.40 an ounce, or 1.2%, to close at $1,207.30 an ounce. On Friday, gold turned negative for 2014, as an encouraging jobs report weighed on haven demand. It was the first time this year that a most-active gold futures contract closed under $1,200. Monday's rebound put the yellow metal back in positive territory for 2014 with a 0.1% year-to-date rise.
December silver gained 40 cents, or 0.4%, to $17.23 an ounce.
In a note on Monday, the analysts said they continue to expect prices to trend higher as global demand remains firm, liquidity remains ample and the dollar appears overbought.
The dollar's advance had at least paused on Monday, and that was helping gold as well as oil futures.
The pro-democracy demonstrations in Hong Kong are still simmering in the market place. The sense of traders is that the situation has not worsened but has not improved, either. Any escalation of the conflict could quickly put the matter back on the front burner and usher in keener risk aversion in the market place.
U.S. economic data released Monday was light and included the employment trends index. That data had no impact on market prices.
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