RTTNews - After seeing moderate weakness in the previous session, the price of gold showed a strong move back to the upside during trading on Friday.
Gold for December delivery closed up $13 at $954.70 an ounce after ending Thursday's trading down $3.10 at $941.70 an ounce. During the session, the price of the precious metal rose as high as $959.90 an ounce.
The rebound by the price of gold was partly due to some weakness in the value of the U.S. dollar, which makes gold more attractive to foreign investors.
While better than expected data on the U.S. housing market helped to lift the U.S. dollar off its worst levels of the day, it remained lower against most of the other major currencies, as the data generated increased risk appetite.
A report from the National Association of Realtors showed that existing home sales rose 7.2 percent to an annual rate of 5.24 million units in July from a 4.89 million-unit rate in June. Economists had been expecting a more modest increase to a 5.0 million-unit rate.
NAR noted that the increase in sales was the largest monthly gain on record for the total existing-home sales series dating back to 1999. With the increase, existing home sales rose for the fourth consecutive month, the first four-month winning streak since June of 2004.
Traders also looked to comments from Federal Reserve Chairman Ben Bernanke, who said that economic activity appears to be leveling out, both in the United States and abroad, while adding that prospects for a return to growth in the near term appear good.
However, Bernanke warned that the recovery might be sluggish at first, with unemployment declining only gradually from high levels.
In other metals trading, silver for September delivery jumped $0.284 to $14.164 an ounce, while copper for September delivery surged up $0.139 to $2.8805 a pound.
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