Gold, silver gained for the first time in five days in New York after the biggest three-day drop in 28 years

Gold and silver futures rose the most since March 2009 as commodities and equities rallied amid optimism that European leaders will take steps to resolve the region’s debt crisis.

Every component rose in the Standard & Poor’s GSCI index of 24 raw materials, while the MSCI All-Country World Index jumped as much as 3.6 percent. In the previous three sessions, gold tumbled 12 percent, the most since 1983, on sales by investors to cover losses in other markets amid mounting concern that the global economy would slump.

“Gold is behaving like a classic commodity and is moving in tandem with the equity market,” Adam Klopfenstein, a senior market strategist at MF Global Holdings Inc. in Chicago, said in a telephone interview. “The selloff was overdone.”

Gold futures for December delivery gained $64.90, or 4.1 percent, to $1,659.60 an ounce by 10:23 a.m. on the Comex in New York. A close at that price would mark the biggest gain for a most-active contract since March 19, 2009. Yesterday, the metal tumbled as much as $104.80 to $1,535, the lowest since July 8.

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Posted by VBN on Sep 28 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry