NEW YORK (
) -- Gold prices rose for the first time in ten days as buyers swooped in to take advantage of prices at six-month lows.
Gold for February delivery climbed $25.90 to settle at $1,565.80 an ounce at the Comex division of the New York Mercantile Exchange to clinch an eleventh straight year of gains. The
traded as high as $1,582.80 and as low as $1546.20 an ounce.
for March delivery advanced 61.1 cents to $27.905 an ounce while the
U.S. dollar index
was falling 0.3% to $80.17.
Gold prices backtracked 4.6% in the prior seven days of trading and fell to their lowest level since July after a strengthening dollar and Chinese and Indian demand concerns sent investors fleeing into cash. Friday's rally was not enough to prevent the metal from completing its first quarterly decline in three years, having lost 3.4% in the last three months.
The metal rebounded this morning after this week's drop spurred speculation the lower price would renew buying interest in China and India after
concern about demand
in the world's two largest countries.
"All the fundamental reasons why people have been buying gold are still intact, so the lower prices could be attracting buyers who have been standing aside," Adrian Day, president of Adrian Day Asset Management, said. In particular, he explained, "Indians tend to be fairly price sensitive. It wouldn't surprise me if more Indian buyers are coming in now after scaling back the past few months."
Gains in gold and silver sent mining companies higher, with the raw materials sector leading gains in the S&P 500.
(GG - Get Report)
was rising 1.1% to $43.99.
(ABX - Get Report)
was gaining 0.4%% at $45.35.
(KGC - Get Report)
was increasing 0.5% to $11.39.
(EXK - Get Report)
was surging 1.3% to $9.74.
-- Written by Kaitlyn Kiernan in New York.
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