Gold Price Bounces Back Slightly From Recent Slide on Bargain Buying

The Wall Street Journal reported that gold prices bounced back slightly after hitting a five-year low earlier in the day, as a number of investors looked to grab bargains.
As quoted in the publication:

The most actively traded gold-futures contract, for February delivery, was recently up $6.10, or 0.6%, at $1,062.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
Prices slid to $1,056.20 an ounce on Friday, the lowest since Feb. 2010, on anticipation that the Federal Reserve will soon raise interest rates. The U.S. central bank is widely expected to tighten monetary policy for the first time since 2006 at its December meeting, ending a historic period of near-zero borrowing costs. Gold is likely to struggle once rates climb as it doesn’t earn interest and costs money to hold.
But prices inched higher on Monday as some traders purchased previously sold gold futures contracts to lock in gains on the pullback. Bearish traders sell futures contracts to bet on weaker prices and must repurchase them to close out those wagers. Gold futures are down 11% in the year through Friday.

Click here for the full Wall Street Journal article.