Comex gold futures have moved well up from the daily low at midday Friday, as bargain hunters have once again stepped in to "buy the dip." December gold last traded down $1.90 at $1,251.50 an ounce. The U.S. dollar index has also weakened and is trading near its daily low, which is also giving the gold market a boost. The bullish technical posture of the gold market is also limiting selling pressure. Some safe-haven buying interest is also evident in the gold market Friday, heading into a long U.S. holiday weekend and a critical trading week next week--when European and U.S. traders will be back at full throttle after their summertime and holiday respites.

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

Editor’s Note: Meet the Kitco News Team at the upcoming Kitco Metals eConference September 12-13, 2010. A not-to-be missed event featuring Ron Paul, Marc Faber and other industry heavyweights. The eConference is free with Pre- Registration www.kitcoeconf.com.

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