investing in gold : Gold rose high on Friday to continue the march of the previous day, in the light of expectations that the Federal Reserve will take a long time over higher interest rates prompted a wave of short-selling after prices hit near their lowest levels in six months.
Analysts said the market has become more extended on the downside after falling to its lowest level since February 2010 at $ 1,064.95 per ounce on Thursday. Proposal at the last meeting of the Federal Reserve minutes that the bank will move cautiously on rates paid a short sale.
Gold was up 0.1 percent to $ 1,082.90 an ounce at 1445 GMT, while the US futures for December delivery went up $ 3.70 an ounce at $ 1,081.60. Minerals was set to end the week little changed after prices jumped by 1.1 percent on Thursday.
"What we are seeing now is a part of a short sale, and the transition from the reality of rising interest rates in December and questioning what is the path to tighten rates in 2016," said an analyst at Mitsubishi Jonathan Butler.
"We're down toward the bottom end of the trading channel we've seen in the year so far, and it was in the oversold area is very close. We seem to have rebounded from the lowest level for the time being."
Speculation that the Federal Reserve will raise interest rates for the first time in nearly ten years this year since the strong US jobs data released in earlier this month, which caused a sharp drop in gold prices.
High rates tend to influence the gold, also raise the opportunity cost of holding non-yielding assets, while the dollar strengthened.
It is likely to keep pressure on gold, which fell 5 percent this month and down 8.5 percent so far this year, in spite of this wave of short selling may not be over yet.
"We are still unclear how much of an interest rate hike will be there by the Fed, but due to all the comments that we have had from minutes FOMC, one element is clear - it will not be too aggressive," market Ava shows the analyst said Naeem Aslam.
"Hence, we saw selling pressure and large-scale get them out."
Chinese banks are growing worried about the increasing number of defaults among jewelry manufacturers, prompting them to review new gold lending more carefully, and according to sources with direct knowledge of the issue.
Silver was up 0.1 percent to $ 14.23 an ounce, and platinum rose 0.6 percent to $ 858.50 an ounce, and palladium was 2.3 percent higher at $ 548.72 an ounce.
