Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures edged higher Friday, finding firmer footing as lower prices attracted physical buyers and investors didn�t want to spend the weekend away from the perceived safety of the metal. Gold for December delivery rose $5, or 0.3%, to end at $1,622.30 an ounce on the Comex division of the New York Mercantile Exchange. Prices traded as $1,642.50 on some momentum buying ahead of the weekend. It had earlier traded as low as $1,607.80 an ounce. Other metals also traded lower, and September�s bloodbath translated into silver�s worst monthly performance in three decades and, for copper and gold, a flashback to October 2008, the thick of the financial crisis.

�There�s just a lot of volatility in the market,� said Jim Steel, a precious metals analyst with HSBC in New York. Gold has likely hit bottom, however, with physical buying from emerging markets providing support for prices, he added. �Any drops below $1,600 (an ounce) will be met with vigorous buying,� Steel said. The dollar gained ground against most of its currency rivals, pressuring prices for most commodities, including gold. The dollar index, which measures the U.S. unit against a basket of major currencies, rose to 78.412 from 77.917 late Thursday. �It looks like the worst of any margin-related selling might be behind us, but I don�t think we�ll pop right back up to the recent highs,� said Brien Lundin, editor of Gold Newsletter. See full story.