Saturday, Oct 25, 2008
Gold futures reversed losses Friday, closing up more than 2% on speculation that the precious metal, losing more than $190 in the previous 11 sessions, has been oversold. Copper and other metals, however, ended mostly lower.
Gold had fallen in 10 out of the past 11 sessions since Oct. 8 on fund liquidation and a firmer dollar. It dropped to $681 earlier Friday, the lowest level since September, 2007.
“Gold’s sell-offs have been sharp and brutal and it is clearly very oversold,” said Mark O’Byrne, executive director at Gold and Silver investment.
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Gold for December delivery closed up $15.60, or 2.2%, at $730.30 an ounce on the Comex division of the New York Mercantile Exchange. Despite the gain, the metal fell 7.3% this week.
Gold’s earlier losses came amid sharp declines in global stock markets. Similarly, crude-oil futures slumped more than 5% as OPEC’s production cuts failed to offset concerns that the global economic slowdown is dampening oil demand.
This article was posted: Saturday, October 25, 2008 at 4:32 am