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.

Find out about commodities trading and learn CFD strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.