NEW YORK (MarketWatch) — Gold futures surged more than 6% Friday, poised for their biggest weekly gain in two months, as wary investors returned to the safety of the precious metal. Other metals also moved broadly higher.
Gold futures rallied $46.30, gaining 6.2% to $795 an ounce on the Comex division of the New York Mercantile Exchange. The benchmark contract was poised to end the week up more than 6%, the biggest weekly percentage gain since the week ended Sept. 19.
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The metal topped $900 an ounce in September after the collapse of Lehman Brothers. But it has since seen roller-coaster dives that sent gold below the $700 mark in October, as banks and funds liquidated their precious-metal assets for much-needed cash in the face of the credit crunch.
Recent gains in gold indicate that investment interests may have returned, analysts said.
“The metal benefited from the return of safe-haven investment demand,” said James Moore, a precious metal’s analyst at TheBullionDesk.com.
Gold is now more than 10% higher than its October low. But comparing with its record high above $1,000 hit in March, the metal is still down more than 20%.
Peter Spina, editor at GoldSeek.com, said a break above $750 an ounce could quickly send gold prices toward — and potentially above — $800.