10/08/07: Gold recovers slightly from weekly low

Gold has recovered slightly after falling to a low of $659.50 per ounce yesterday (August 9th).

Investors evidently saw good value in current prices, at a time when risk aversion has caused the precious metal to stumble somewhat. Worries about the sub-prime mortgage market in the US has caused many to rush into the dollar and US Treasuries, Thomson Financial reports.

James Moore, of BaseMetals.com, said: "Further risk aversion will no doubt generate more long liquidation in the coming session however gold is back into an area of previously strong support."

In New York this morning spot gold was trading at $664.10 an ounce.

Many analysts believe that the current price, which has been hovering between $650 and $680 for some time, is in for a significant increase in the coming months.

Pierre Lassonde, vice chairman of major gold producer Newmont Mining, even went so far as to predict that bullion could eventually rise to more than $1,000 an ounce.