Gold rises on bargain hunting

: 0 Comment(s)Print E-mail Xinhua, May 31, 2012

Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange regained some ground on Wednesday, as the low price near midsession captured the interest of bargain hunters looking for a safe-haven asset.

The most active gold contract for August delivery gained 14.7 U. S. dollars, or 0.95 percent, to settle at 1,565.7 dollars per ounce.

The precious metal recovered a substantial amount of its Tuesday losses and settled about one percent higher than in the previous session, although it traded in negative territory almost throughout Wednesday morning.

Gold traded as low as 1,532 dollars an ounce before seeing an uptick in the market, as bargain hunters were enticed by the low price.

Uncertainty over the economic situation in Europe led the euro to fall to a two-year low against the dollar, and gold seemed to have gained momentum from some safe-haven buying.

U.S. data released on Wednesday also painted a negative picture of the economy, as the pending home sales index of the National Association of Realtors fell 5.5 percent in April from the previous month.

Traders seem to be hoping for central banks to introduce more quantitative easing policies, which would be a supportive factor for gold.

Silver for July delivery also rose 19.2 cents, or 0.69 percent, to settle at 27.983 dollars per ounce.