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Gold Recovers, Stays under $1,200

Gold Recovers, Stays under $1,200Gold Recovers, Stays under $1,200

Gold futures gained Monday, recovering somewhat from last week’s drubbing that has left them under $1,200 an ounce, MarketWatch reported.

Gold for December delivery was last up $3.60, or 0.3%, to $1,196.50 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.

A rallying US dollar has whacked gold and other dollar-denominated commodities in the past three months, but analysts at Sterne Agee think the greenback’s gains are overdone, and they sound upbeat on gold looking into next year.

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.” Sterne Agee expects gold prices to average $1,400 an ounce in 2015 and $1,450 in 2016.

The dollar’s advance had at least paused on Monday, and that was helping gold as well as oil futures.

In other metals trading on Monday, December silver gained 19 cents, or 1.2%, to $17.02 an ounce.

 

Financialtribune.com