Daily Gold Update

Source: Bloomberg

New York— Gold gained for a second day in New York on speculation prices near a three-month low will spur increased physical and investment demand. The metal slid yesterday to the lowest level since May 5. European equities this week climbed to a 12-week high, while the euro today rose to the highest level since May 10 against the dollar. Gold and the greenback usually move inversely. Bullion holdings in the world�s biggest exchange-traded fund yesterday dropped the most in more than two years.

�Gold has gained ground on a mix of physical and investment bargain-hunting,� said James Moore, an analyst at TheBullionDesk.com in London. �Given the reduction in speculative/investment stale longs in recent weeks, and with technical indicators nearing oversold, investors may view current levels as a good buying opportunity.� Gold futures for December delivery added as much as $9.60, or 0.8 percent, to $1,172 an ounce on the Comex in New York and were at $1,165.50 at 8:12 a.m. local time. Prices fell as low as $1,159.30 yesterday. The metal for immediate delivery in London was little changed at $1,163.10. Bullion rose to $1,166 an ounce in the morning �fixing� in London, used by some mining companies to sell output, from $1,157 at yesterday�s afternoon fixing. The 14-day relative- strength index for futures was at 36.06. Some analysts view a level of 30 as a signal that prices may be set to gain. See full story.