Gold Bounces and Drops Reacting on Oil and Dollar Status

Gold struggled to regain its footing on Thursday after losing around $2 in New York on a firm dollar and weaker oil prices, and dealers said volatility turned off bargain hunters.

Spot gold hit a high of $611.30 an ounce but then dropped to as low as $608.70 an ounce.

It was quoted at $609.55/610.05 an ounce by 0359 GMT, down from $610.80/611.80 late in New York on Wednesday.


Gold hit a high of $615.70 an ounce this week but failed to sustain the gains. The metal started the new year on a high note, hitting its highest in nearly a month at $644.90 last week but the recent sell-off disappointed investors.

"If there was any bargain hunting, it would have gone up a bit higher. I am a bit scared because we haven't made any headway to the upside," said a dealer in Singapore.