Gold recovers after steep fall

Gold futures on the COMEX Division of the New York Mercantile Exchange regained some steam on Friday, recovering from the sell-off seen over the two previous sessions. The most active gold contract for Dec. delivery rose 4.9 dollars, or 0.3 percent, to 1,725.1 dollars per ounce. A trader mentioned that gold has been under pressures most of the session, as funds traders continued to liquidate positions in precious metal and other commodities, but recent drop in gold price has started to see investors calling a new buying opportunity, as bargain hunters jumped into the market before the weekend. Gold lost 3.5 percent this week, snapping a three-week winning streak for the metal, as the volatility and choppy market conditions continue to be fueled by the increased fragility in the European Union. Market participants pointed out that gold's much-vaunted status as a safe haven has not been in evidence during recent market turmoil, as the sharp falls in equities and commodities forced some investors to sell their profitable gold positions to cover losses elsewhere, and investors tend to go into cash or safe havens like U.S. dollar during crisis. Mike Daly, a gold specialist with PFGbest here in Chicago said: "the economic news here in the United States coupled with the worsening debt crisis in the Euro region has fueled a stronger U.S dollar and therefore pressuring the precious metals markets. The recent sell-off in the crude oil futures has also halted the rally momentum in the gold market." Silver for Dec. delivery rose 92 cents, or 2.9 percent, to 32. 417 dollars per ounce. Platinum for Jan. delivery jumped 7.6 dollars, or 0.5 percent, to 1,588.7 dollars per ounce.