Gold At Daily Highs On Bargain Buying, Short Covering

(Kitco News) - Gold pricesare trading moderately up and at their session highs inlate-morning action Friday. Shorter-term futures traders are exiting theirpreviously sold, or short, positions heading into the weekend. Also, afterprices dropped to a 12-month low overnight some perceived bargain-basementbuying has surfaced today. It could also be that smart-money traders arelooking just over the horizon and reckoning that the U.S. and Iran could be ona collision course--possibly militarily--regarding tightening U.S. economic sanctions on Iran, and Iran's bellicose rhetorictoward the U.S. in recent weeks. Such a scenario would likely be bullish forsafe-haven gold and silver markets. December gold was last up $7.00 an ounce at$1,227.10.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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