Gold rebounds from five-month low

<p>Gold is up for the second day in a row.</p>

The price of gold is up for the second day in a row today (December 10th), bouncing back from the five-month low the precious metal recently hit.

Gold was up again in New York today, rebounding from falling to $1,210.10 (£735.56) an ounce on December 6th, which was its lowest point since early July.

David Govett, head of precious metals at Marex Spectron Group in London, explained that there has been some short-covering and some bargain hunting, which has affected the value of the metal.

He also noted there have been signs of growing demand in China, adding: "The market is still limited on the upside. We continue to wait for next week's Fed meeting."

Gold is likely to fall for the year for the first time in 13 years, with the value of the precious metal around 27 per cent down since March.

Edmund Moy, chief strategist with gold-backed IRA provider Morgan Gold, said earlier in the week that he expects gold prices will stay in flux for the foreseeable future.

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