Gold rebounds

Reuters

Bengaluru

Gold rose on Wednesday, bouncing back from hitting its lowest in more than three months in the previous session, as the U.S. dollar eased back from a two-month high and stocks fell.

Spot gold was up half a percent at $1,273.40 an ounce by 0349 GMT, after dropping more than 3 percent on Tuesday to its lowest since June 24. U.S. gold futures rose 0.5 percent to $1,275.90 an ounce, after also falling more than 3 percent on Tuesday. "Tuesday´s fall was really a long liquidation and was probably over done.

If the non-farm payroll data this week is too good, then we might try another low," said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.  "Still, $1,250 would be a good support.  I don´t really expect gold to go much lower from here and we could see steady buy back toward $1,300 levels," Ikemizu said. The drop on Tuesday was bullion´s biggest one-day percentage drop.