Gold rose 1.5 percent on Thursday, rebounding above $1,700 an ounce as the previous session's 5 percent plunge induced investors to buy at lower prices on hopes the tumble was a healthy correction rather than the start of a bear market. The decline in open interest and gold's more than $100 tumble in high volume on Wednesday suggested that one or a few large hedge funds or institutional investors might have left the gold market, traders said.
Spot gold was up 1.5 percent at $1,721.20 an ounce by 2:38 PM EST (1938 GMT), having hit a session low at $1,694.09 an ounce. US gold futures for April delivery settled up $10.90 an ounce at $1,722.20 an ounce. Volume was heavy for a second straight session, about 20 percent above its 30-day average for one of the busiest sessions of the year, preliminary Reuters data showed. Silver was up 2.4 percent at $35.43 an ounce. It also fell more than 6 percent on Wednesday. Spot platinum was up 1.3 percent at $1,696.49 an ounce, while palladium was up 1.9 percent at $711.72.
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