Little gains for bullions

Bullion prices recover after two days of losses on Friday

Bullion prices recovered after two days of losses on Friday, 24 October 2014 at comex supported by haven demand following news that a doctor in New York contracted Ebola. Gold rose to its highest level since 10 September 2014 earlier this week but backed off as the week ended. Physical buying ahead of the Indian Diwali holiday helped push gold to its upper levels.

Gold futures for December delivery rose $2.70, or 0.2%, to settle at $1,231.80 an ounce. For the week, the precious metal is down 0.6%.

December silver edged up 2 cents to $17.18 an ounce.

Economic data at Wall Street was limited to the New Home Sales report for September, which revealed a 0.2% increase to 467,000 from a revised rate of 466,000 (from 504,000). However, that was below the consensus, which expected a reading of 475,000. Most notably, the large downward revision to the August figures took away what had been the strongest monthly reading since May 2008. Also, prices for new homes fell 4.0% year-over-year, which was the first such decline since April and the largest drop since a 7.7% tumble in January 2012.

October so far as been a treat for gold bulls, with the market rising smartly off an early-month sell off, but the Federal Open Market Committee meeting and movements in the U.S. dollar will decide whether it has any impact on the yellow metal.

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