Gold rises after dip

Gold prices rose this afternoon (January 7th) after falling to $855.08 per ounce this morning.

Spot gold stood at $863.33 at 13:28 local time in New York today, up slightly from the $863.20 recorded late on Friday, Thomson Financial reports.

The movement came after the dollar failed to build on the upward momentum it gained this morning and days after gold hit record highs last week.

"After the release of Friday's US non-farm payroll data, the US dollar looks very vulnerable again. Also, with most market participants expected to return en masse this week, precious metals should see good trading volumes," commented Walter De Wet, an analyst with Standard Bank.

Gold hit an all-time high on Thursday, surpassing the $865 mark and prompting predictions of further increases later this year.

The World Gold Council attributed the surge in prices to fears over inflation and a gradual fall in mine output, among other factors.