Daily Gold Update

Source:Marketwatch

New York— Gold and other metals futures bounced back on Monday, with investors more eager to buy bullion as prices had come off from their record mid-May highs. Gold futures for June delivery rose $17.90, or 1.5%, to settle at $1,194 on the Comex division of the New York Mercantile Exchange. The yellow metal dropped $51.70 last week, the worst weekly drop since the five-day period ended Feb. 27, 2009. Gold closed at a record of $1,243.10 an ounce on May 12.

"Gold is pretty much on sale right now," said James Cordier, a portfolio manager with Optionsellers.com. "It reached a level price-wise that brought buyers back to the market." Uncertainties regarding the euro zone and the global economic recovery are still prevalent, he added. Gold prices have moved beyond from supply and demand dynamics as "it has turned into a currency." Volatility in the gold market is expected to continue, however, as "an increasing share of investment consumption in global gold demand will continue" to feed the price swings, according to John Meyer, an analyst at Fairfax in London. See full story.