SAN FRANCISCO (MarketWatch) — Gold futures rebounded Monday from last week’s selloff to score their biggest gain of the month, as analysts say a recent report hinted at a potential bottom for the metal’s prices.
Investors also weighed gold’s safe-haven appeal against a backdrop of early exit results from Italy’s election and a rating downgrade on the United Kingdom.
Gold for delivery in April GCJ3 +0.67% settled at $1,586.60 an ounce on the Comex division of the New York Mercantile Exchange, up $13.80, or 0.9%. That was the biggest one-day gain for futures prices month to date.
Gold fell $5.80, or 0.4%, on Friday to settle at a seven-month low of $1,572.80 an ounce, closing out last week with a 2.3% loss. See: Gold ends at seven-month low, down 2.3% on week.
“The current rally is reflective of some very significant moves in the ‘paper’ gold markets,” said Brien Lundin, editor of Gold Newsletter.
The U.S. Commodity Futures Trading Commission released its Commitments of Traders report on Friday detailing traders’ standing in the futures markets on Tuesday, Feb. 19. See the full COT report.
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