NEW YORK (
are posting gains for the seventh of the past eight sessions as a raft of influences were providing positive momentum for traders.
Gold for December delivery at the COMEX division of the New York Mercantile Exchange was tacking on $6.40 to $1,367.30 an ounce late Friday morning. The
traded as high as $1,374.30 and as low as $1,357 an ounce, while the spot price was increasing $2.96.
The yellow metal is up about 4% during August. Analysts initially deemed the August move a short-covering trade, but many now say it could be a rally with more gains ahead.
"The fact that gold is rallying with base [metals] as yields rise certainly suggests that there is something 'out of the norm' going on - to us it represents the market making a bet on future Fed actions," Marex Spectron wrote in a note Friday morning. "One could dismiss it is a short squeeze but ultimately what is the difference between a 20% short squeeze and a 20% bull market?"
echoed a similar sentiment in a research note to clients on Thursday, advising clients to purchase gold.
"Buy the bounce," precious metals analysts John Bridges and Anant Inani wrote in the research note's headline.
Gold's huge rise on Thursday
following the revelation that Paulson & Co. cut its gold position in half, Bridges and Inani suggested, meant the move "may be delivering an exclamation mark to define the end of the 10-month, 25% fall in gold and 50% fall in gold equities."
Michael Smith, president of T&K Futures and Options, said in a phone interview that gold traders are not dismissing escalating violence in Egypt.
"This new violence has really got people scared," Smith said. "I think that [it's] the safe-haven trade all over again, like we saw two years ago when Greece was going to collapse and Italy and all the gold people ran to gold again for the currency hedge."
for September delivery were climbing 17 cents to $23.10 an ounce, while the
U.S. dollar index
moved higher by 0.16% to $81.30.