CHICAGO, Oct. 21 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange rebounded on Friday,ending a four-session losing streak, as weaker dollar increased the appeal of gold as an alternative asset. The recent price drop also encouraged bargain hunters to re-enter.
The most active gold contract for December delivery jumped 23.2 dollars, or 1.4 percent, to 1,636.1 dollars per ounce.
The U.S. dollar fell sharply Friday against most other major currencies, amid growing optimism that EU leaders were close to agreeing on a credible plan for the currency union's bailout fund and that U.S. Federal Reserve may seek further monetary easing.
Gold prices rallied as a weaker U.S. dollar made the metal cheaper to buy in other currencies while recent price drop in precious metals lured bargain hunters back into the market.
The precious metal's price lost 4.2 percent in last four sessions, and 2.8 percent this week, as traders and investors tried to decipher the constant barrage of news from the European Union along with the daily economic data.
"Without a doubt this week's markets were fueled by the fragility of the Euro region and it's seemingly ever changing news releases", said Mike Daly, a gold specialist with PFGbest here in Chicago. "It has become very apparent that the 17 Euro nations cannot unanimously agree on anything."
"With this weekend's Brussels summit quickly approaching all the eyes of the investment community will be watching and hoping for a favorable end result," Daly added.
Silver for December delivery jumped 91.2 cent, or 3 percent, to 31.193 dollars per ounce. Platinum for January delivery added 18. 8 dollars, or 1.3 percent, to 1,509.2 dollars per ounce.