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Gold Rebounds on Dollar Weakness
Dec 8,2011 09:58CST
data analysis
Source:SMM
Gold futures on the COMEX on Wednesday bounced off recent weak sentiment, as a weakened U.S. dollar helped enhance the metal's appeal as an alternative investment.

CHICAGO, Dec. 7 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange on Wednesday bounced off recent weak sentiment, as a weakened U.S. dollar helped enhance the metal's appeal as an alternative investment.

The most active gold contract for February delivery climbed 13 U.S. dollars, or 0.75 percent, to 1,744.8 dollars per ounce, which marks the gold's first rise in the latest three trading days.

Market analysts said that the trading was somewhat bleak as the holidays approached, and the metal's rebound was mainly underpinned by a weaker dollar in the day.

The dollar index, which measures the value of dollar against six other currencies, on Wednesday traded around 78.4, down 0.124 percent from the prior trading day.

Besides, the market would closely watch the movement of EU debt problem after Standard & Poor's threatened to downgrade the credit rating of euro-zone countries, said analysts. Leaders from 27 European Union countries are to meet on Friday in Brussels to discuss proposals for more stringent fiscal regulations and treaty changes.

Silver for March delivery shed 11.7 U.S. cents, or 0.4 percent, to 32.627 dollars per ounce. Platinum for January delivery dropped two dollars, or 0.38 percent, to 1,522 dollars per ounce.
 

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