Gold bounces back from biggest weekly drop for a year

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The ricochet also came as Chinese buyers returned after the Golden Week sabbatical.

The metal slid 4.5 percent last week, touching a four-month low of £1002.13 ($1,241.20) an ounce on Friday, after a bankrupt of support at £1,500 ($1,300) unleashed a wave of technically-driven selling.

It has since recaptured as traders weigh up the timing of an US interest rate hike this year after yrolls observations on Friday came in softer than expected, bolstering expectations that hikes would solely be gradual.

Spot gold was up 0.3 percent at £1017.83 ($1,260.64) an ounce at lunchtime while US gold time to comes for December delivery were up £8.64 ($10.70) an ounce at £1019.41 ($1,262.60).

Mitsubishi analyst Jonathan Butler hinted: ” rtly this is a reaction to the rather disappointing yrolls data on Friday, which has stiff a readjustment of rate rise expectations.

“There is also a feeling that the sell-off after week was rather overdone.

“Also of course we have a return of the Chinese woman market from a week-long holiday last week.

“The market was crucially needing that element of physical support that we would normally wish to at least keep a floor under prices.”

Hedge funds and specie managers cut their net long positions in COMEX gold contracts to four-month lows in the week to October 4, as fees tumbled, US government data showed.

However, the world’s largest gold-backed exchange-traded wherewithal, New York-listed SPDR Gold Shares, reported the biggest one-day incline in its holdings since early July on Friday, of 11.3 tonnes.

Attains in gold were capped on Monday by a perception that Democrat Hillary Clinton had won out on Republican Donald Trump in the second U.S. presidential debate overnight. A Trump overcoming would have been seen as beneficial for gold, analysts declared, as it would increase uncertainty.

MKS said in a note: “The metal drifted soften throughout much of the debate, with many commentators affirming Clinton had charmed the upper hand.”

Financial markets saw less chance of a Trump mastery amid a scandal over vulgar comments he made about helpmates.

Among other precious metals, silver was up 1.2 percent at £14.31 ($17.72) an ounce.

It flatten 8.5 percent last week, its biggest weekly drop in various than three years.

Platinum was 0.6 percent higher at £783.33 ($970.20) an ounce, pull someones leg touched £764.11 ($946.40) on Friday, its lowest since April 7.

lladium snapped a five period fall, and was 0.6 percent higher at £540.06 ($668.90) an ounce.

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