Gold Rises Amid Growing Economic Concerns

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"The weakness in consumer spending patterns reinforces the rate-cut expectations for Tuesday," said Jon Nadler, an analyst at Kitco Bullion Dealers, in a research note. "That, coupled with the U.K. bank troubles, sent gold back to the plus column," he said.

Gold futures rose sharply Friday, as data on U.S. retail sales came in below expectations and a British lender tapped the Bank of England for emergency funds reigniting concerns about economic weakness and credit-market woes.

Gold for December delivery rose $7.10, or 1%, at $725 an ounce on New York Mercantile Exchange. On Thursday, the benchmark gold contract closed down $2.80 an ounce.

"The weakness in consumer spending patterns reinforces the rate-cut expectations for Tuesday," said Jon Nadler, an analyst at Kitco Bullion Dealers, in a research note. "That, coupled with the U.K. bank troubles, sent gold back to the plus column," he said.

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