Gold Climbs on Asian Tensions

In addition, the forthcoming long holiday weekend in both the U.S. and the United Kingdom likely had traders squaring positions. Speculators who had sold futures contracts short at the beginning of May and closed them out at current prices would have netted a $20-an-ounce profit as bullion prices retreated throughout the month.

On the technical analysis side, chart watchers say the bullion market is now very "oversold" and due for a bounce.

"Right now the risk is to the upside," says Marc Eckelberry, a Los Angeles-based futures trader and author of the AheadoftheNews.com markets blog. He spies a rally on the cards if the June-dated bullion futures can hold, and close, above critical support at $652 an ounce.

In the precious-metals patch, UBS upped its ratings on Yamana Gold(AUY Quote) and Eldorado Gold(EGO Quote) to buy from neutral. The news sent the shares up 3% and 1.6% respectively.

As for base metals, copper contracts were gaining 6 cents at $3.24 a pound following Thursday's precipitous 12-cent drop.

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