Daily Gold Update

Source: MarketWatch

New York— Gold futures rose Monday, bouncing back from a seven-session swoon, as oil prices rose and signs of stability in the financial system seemed to halt heavy selling of assets by funds strapped for cash. Gold's gains, however, were limited by a stronger dollar, which tends to put downward pressures on dollar-denominated commodities prices. Gold for December delivery gained $2.30, or 0.3%, to end at $790 an ounce on the Comex division of the New York Mercantile Exchange. It rose to as high as $811.80 overnight. The metal had lost 8.3% last week, its biggest weekly decline in two months, as investors sought out cash amid the global markets' turbulence.

"Gold was wrongly being treated as just another commodity akin to pork bellies or lead as the 'dash for cash' … gathered pace," said Mark O'Byrne, executive director of Gold & Silver Investments, in emailed comments. "Many realize that the U.S. and global economy is on the verge of a sharp recession and thus realize the importance of staying diversified," he added. Investors tend to buy gold as a safe haven against economic slowdown. See full story.