Gold ends moderately higher, snapping a 3 day-losing streak

14:26, July 23, 2011      

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Gold futures on the COMEX Division of the New York Mercantile Exchange drifted higher on Friday, ending a 3-session losing streak, benefited from lingering doubts about the success of Eurozone rescue plan and U.S. debt ceiling talks.

The most active gold contract for August delivery climbed 14.5 dollars, or 0.9 percent, to 1,601.5 dollars per ounce.

A trader mentioned that gold has received strong support as a bomb ripped through Oslo's central government district on Friday, killing seven people.

"Anytime there is an act of war or terrorist act, it normally is very bullish Gold, as it sends investors into safe haven alternative investments," said Mike Daly, a gold specialist with PFGbest here in Chicago.

The bullion has been recently come under pressure amid a weaker dollar and as a plan to resolve the euro zone's sovereign- debt issues dimmed the gold's shine as a safe-haven.

"The situation in Greece is a long way from being over despite their receiving bailout money from the IMF and European Union jointly," said Daly, "The European Union's debt crisis appears to spreading and therefore adding to the fragility of the region", Daly added.

Meanwhile, gold also rallied on Friday, as slow progress toward an agreement to raise the U.S. debt ceiling fueled investors' demand for a refuge asset.

Daly pointed out that it has become a reality that U.S Legislators are going to wait until the August 2nd deadline and continue to hold world markets hostage.

Silver for September delivery jumped 1.175 dollars, or 3 percent, to 40.122 dollars per ounce. Platinum for October delivery added 10.6 dollars, or 0.6 percent, to 1,798.4 dollars per ounce.

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