2/12/2016, 9:10 PM (Source: TeleTrader)
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Gold endures market volatility

Gold has lost 0.62% of its value in just under 24 hours on Friday, a day after a surge rarely seen even during the time of the most volatile market moves. The resistance point was virtually the same as a year ago, on February 2, 2015 - close to $1,285 per fine ounce. The intraday surge on February 11 was last seen in the days of the Great Recession in late 2008.

A degree of recovery in European financial sector returned a faith in global equities, and gold was back under $1,240 per ounce. Gold spot price was at $1,238.81 per fine ounce at 9:08 p.m. CET.

The movements of the gold prices have some silver lining, as the precious metal seem to follow the path of gold: down 0.17% at $15.71 per ounce at 9:08 p.m. CET, after a similar trading session a day before.

Platinum was losing 0.24% to $956.41 per ounce, while palladium saw gains of 0.63% at $523.60 per ounce, both at 9:08 p.m. CET.

Other metals followed other market and industrial trends, such as supply and demand, and demand is mostly in decline, with economic downturn coming from China.

Aluminium rose 0.37%, copper edged up 0.08%, but nickel dipped 3.68% for the day. Lead climbed 1.22%, and zinc fell 0.18% during the trade on Friday, according to available market data.

Traditional safe haven for investors, known as gold, has proved once again as a profitable commodity for a clever buyer. Some of the reasons could be persistent volatility of oil prices, caused by oversupply and additional overproduction, or stocks that seem not worth investing in even with very good earnings, profits, and dividends.

The surge of price seen on February 11 is a part of a recent trend that can be traced to late November. Come late December, just before the holiday season, some investors have decided to put their cash into gold, in the wake of a string of sell-off sessions.

Since then, the price has been on a rising path, with some daily ticks up and down. For an investor who decided to buy gold any time since November, the return of investment was admirable, even if one would have sold, say, a half of their pre-New Year purchase.

Breaking the News / ZR