Gold Extends Gains On Bargain Hunting

(RTTNews) - The price of gold was moving higher Friday morning on bargain hunting after the yellow metal suffered its worst annual performance in over twelve years in 2013.

Gold for February delivery, the most actively traded contract, added $5.80 to $1,231.00 an ounce. Yesterday, gold surged nearly 2 percent due mainly on some bargain hunting even though the dollar strengthened against a basket of major currencies. Some mixed macroeconomic data also contributed to the surge in gold prices, with investors viewing the precious metal a safe haven asset as global equity markets declined.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 794.62 tons from 798.22 tons.

This morning, the U.S. dollar moved up near one-month high versus the euro and the Swiss franc, while leveling off from a 2-year low versus sterling and a 5-year high against the yen.

In economic news, euro zone broadest measure of money supply grew at a slightly faster pace in November, data from the European Central Bank showed. The annual growth rate of M3 was 1.5 percent in November compared with 1.4 percent in October. The annual growth rate of M1 stood at 6.5 percent in November.

Elsewhere, U.K. mortgage approvals increased for the ninth consecutive month in November, the Bank of England said. The number of loans approved for house purchases was 70,758 in November, up from 68,029 in October. Approvals also exceeded the 69,700 level forecast by economists.

The prices of silver and platinum were moving higher in morning deals.