Daily Gold Update

Source: MarketWatch

New York— Gold futures reversed earlier losses Monday and closed up 1.7% as investors speculated that the precious metal has been oversold. Prices have fallen in 10 out of the past 12 sessions as investors scrambled to liquidate their gold positions to meet margin calls in other markets.

"Gold has recovered from its sharp sell-offs of recent days, with market participants realizing that the extent of the decline may be overdone," said Mark O'Byrne, executive director at Gold and Silver Investments. Gold for December delivery ended $12.60 higher at $742.90 an ounce on the Comex division of the New York Mercantile Exchange. It closed above $900 on Oct. 8, but has since lost about $160 an ounce. Earlier in the day, gold was trading sharply lower, touching $707 an ounce, as the U.S. dollar rose against the euro and the British pound. The dollar pared losses in recent trading. See full story.