Gold rebounds on bargain-hunting, weakened dollar

Gold futures on the COMEX Division of the New York Mercantile Exchange bounced off on Friday, as bargain hunters stepped in following two consecutive drops in gold price. Meanwhile, a weaker dollar gave additional push to the metal's rebound. The most active gold contract for December delivery hiked 28.5 U.S. dollars, or 1.6 percent, to 1788.1 dollars per ounce. Market analysts said that recent declines in gold in the wake of a more optimism surrounding Italy and its bonds created a good opportunity for investors wishing to enter the market at an attractive level. Gold had dropped for two consecutive trading days. Besides, weakness in the U.S. dollar, which makes gold less expensive for holders of other currencies, also provided some support for the metal. The dollar index, which measures the dollar 's price against a basket of six other currencies, slipped on Friday to 76.9, down 0.9 percent from the previous trading day. Traders are widely optimistic over gold's prospect as EU debt crisis continues to spur demands for safe-have investment. Gold climbed 26 percent this year, heading for an 11th consecutive annual advance. Silver for December delivery gained 57.6 U.S. cents, or 1.7 percent, to 34.682 dollars per ounce. Platinum for January delivery also climbed 19.4 dollars, or 1.2 percent, to 1,646.7 dollars per ounce.