The gold price bounced back today, ending a straight week of losses as bargain hunters stepped into to snap up the precious metal.
At 8.44pm (GMT) gold was trading at $1,259 after falling as low as $1241 in yesterday’s trading.
After falling almost $100 in the past week, the worst weekly fall since 2014, some such as Chinese investors saw this as a buying opportunity,
“Gold prices are quite appealing after the recent correction," said Richard Xu, a fund manager at China's biggest gold exchange-traded fund HuaAn Gold.
"In China, what we see today is that there is some demand to buy gold following its dip." he added.
A weak non-farm payrolls report out of the US on Friday may also support Gold in the short term as expectations for consecutive rate hikes from the US Federal Reserve starting in December faded,
“I continue to think the global economy is too weak to withstand too many rate hikes from the Fed,” says Joe Foster of US money manager Van Eck,
Even if the Fed does tighten monetary policy in December the gold price won’t necessarily crumble if history is anything to go by,
“This is shaping up to be a carbon copy of last December when we had all this anticipation of a rate increase and gold was weak. But the day they actually raised rates marked the bottom of the gold market.” Mr Eck added.
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