Gold News & Info

Source: MarketWatch

New York— Gold futures rose Monday for the first time in three sessions amid speculation that the precious metal's prices, having suffered their biggest monthly loss in 25 years, may have bottomed. Gold for December delivery gained $8.60, or 1.2%, to end $726.80 an ounce on the Comex division of the New York Mercantile Exchange. The contract had surged to $739.50 earlier. The benchmark future lost 18% in October, its biggest monthly percentage decline since February 1983, according to Comex data.

Gold's losses last month mainly stemmed from a strengthening U.S. dollar, fund liquidations, and worries that the financial crisis may have pushed the world economy into deflation, analysts said. But gold-related equities were showing that prices for the metal may have bottomed, analysts said. The Amex Gold Bugs Index, which tracks the share prices of major gold companies, jumped 15% last week, the first weekly gain in five weeks. The PHLX Gold & Silver Sector Index rose 14%, gaining for first week in six. "The performance of the precious metal mining shares may be an indication that we are at or near a low in this sell-off," said Mark O'Byrne, executive director at Gold & Silver Investments. These indexes "tend to be a leading indicator of a trend reversal in the precious metals." See full story.