NEW YORK—Gold and other precious metals turned higher Monday, recovering from their lowest levels of the year, as the dollar eased against the euro and the yen.
Gold for December delivery, the most actively traded contract, rose $14.40, or 1.2%, to settle at $1,207.30 a troy ounce on the Comex division of the New York Mercantile Exchange.
On Monday, the dollar sank 0.7% to 108.99 Japanese yen and also gave way to the euro, which rallied 0.7% to trade at $1.2602. A weaker greenback tends to fan investors’ interest in gold, as the dollar-denominated metal becomes less expensive for buyers using foreign currencies.
“The little reprieve in the recent dollar strength added support to the metals complex,” said Dave Meger, director of metals trading with Vision Financial Markets in Chicago.
Precious metals have closely tracked the dollar for most of 2014, as expectations of tighter monetary policy from the Federal Reserve bolstered the appeal of the U.S. currency while sapping investor interest in such haven assets as gold and silver.
On Friday, gold and silver set 2014 lows after stronger-than-expected U.S. employment data pushed the ICE Dollar Index to a four-year high.
Monday’s move higher in gold reflects a market that is “correcting an oversold condition, so this is not the time to step in front of it,” said Ira Epstein, a broker with the Linn Group.
Silver prices followed gold higher, with the most-active contract, for December delivery, climbing 39.9 cents, or 2.4%, to end at $17.225 a troy ounce on the Comex.
“Silver is renowned for overextension during cycle trends and rarely disappoints in this regard,” traders at TD Securities said in a note to clients.
Nymex platinum for January delivery rose $22.30, or 1.8%, to settle at $1,249.20 a troy ounce, while December-delivery palladium settled up $11.55, or 1.5%, at $766.10 a troy ounce.
source url : http://online.wsj.com/articles/gold-silver-prices-rise-as-dollar-retreats-1412606446
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