Gold Fund Buying Boosts Gold Price Ahead of Financial Summit

Source:

"Gold jumped after the start of COMEX trading," said Tom Kendall, precious metals strategist at Mitsubishi Corp. "It was very quiet ahead of the U.S. rally and people are waiting to see if anything positive will come out of the G20 meeting."

Gold futures ended more than 5 percent higher on Friday as heavy buying by funds triggered buy stops ahead of the Group of 20 summit meeting, which could set a positive tone for the bullion market.

"Gold was oversold, and there was good fund buying in the gold pit at market opening," said Jonathan Jossen, COMEX gold options floor trader in New York. Spot gold was at $746.65 at 2:22 p.m. EST (1922 GMT), up 1.6 percent from Thursday's close of $734.30.

U.S. gold futures for December delivery settled up $37.50, or 5.3 percent, to $742.50 an ounce on the COMEX division of the New York Mercantile Exchange. "Gold jumped after the start of COMEX trading," said Tom Kendall, precious metals strategist at Mitsubishi Corp. "It was very quiet ahead of the U.S. rally and people are waiting to see if anything positive will come out of the G20 meeting."...

Analysts said that bullion investors positioned themselves for possible favorable news from the G20 summit that could pause the dollar's resurgence and bolster gold.

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