Gold edges higher after sharp drop

Gold futures on the COMEX Division of the New York Mercantile Exchange on Wednesday closed higher thanks to a late-session rebound, as bargain hunters entered into the market following a sharp decline in the gold price.

The most active gold contract for February delivery gained 0.7 dollars per ounce, or 0.05 percent, to settle at 1,333 dollars.

Market traders noted that the gold price has tended to be weaker at the beginning of the year, but some optimistic investors still hold a bullish attitude over the gold market and tend to add gold holdings whenever the price falls into the acceptable range.

Gold has lost six percent since the beginning of this year, after ending 2010 with a 30-percent gain. Traders added that factors that had buoyed up the gold market in 2010 were still present, namely fears of currency debasement and worries about the sovereign debt situation in Europe.

Silver for March delivery decreased 32.3 cents, or 1.2 percent, to 27.128 dollars per ounce. April platinum increased 9.6 dollars, or 0.54 percent, to 1,796.9 dollars per ounce.

Source: Xinhua