Gold recovers ground after profit-taking

Gold prices have today (November 13th) reversed part of yesterday's fall, climbing back more than 1.5 per cent from overnight lows.

But while spot gold held firm above $800, gold for December delivery fell again today, slipping $5.70 to $802 per ounce on the New York Mercantile Exchange.

The resistance of spot gold suggested, however, that the dip in value seen on Monday was largely a corrective one and not the sign of a bear run – with profit-taking momentarily hitting gold, but bargain-hunters today showing a new thirst for the metal.

Zachary Oxman, a senior trader at Wisdom Financial, told Marketwatch that the metal's prospects had changed slightly, stating: "Technically, gold has broken through some near-term support."

He added, however, that new rises could soon occur: "Long term, I definitely see gold higher as well as silver against a dollar that should continue to weaken."

A factor that could drive gold temporarily lower is the crude-oil outlook – with the International Energy Agency today cutting its estimates for global oil demand over the coming year.