Gold prices rose more than 1 percent on Thursday afternoon, reversing earlier losses and lifting silver, as US equities resumed their downward spiral, renewing bullion's safe-haven appeal that has spurred the market's biggest rally in years. On Wall Street, equities snapped a three-day rally, after a slump in shares of Wal-Mart Stores weighed on retail stocks and oil prices retreated.
"The equities pulled back. Gold popped," said Bob Haberkorn, senior market strategist at RJO Futures in Chicago. "While equities are starting to come back and oil's shown a little bit of life, gold is strengthening as the day goes on. The sentiment in gold right now is overwhelmingly bullish." Spot gold was up 1.3 percent at $1,225 an ounce at 1:15 pm EST (1815 GMT), after steadily rising almost $30 off the intraday lows. The recovery put it closer to the one-year highs around $1,260 hit a week ago. US gold futures for April delivery were up 1.1 percent at $1,225.4.
Silver was recovered earlier losses, and was up 0.91 percent at $15.44. Some traders attributed the buying to high-speed computer-driven algorithmic trading. "The sellers seem to have disappeared. At this rate, they should print $1,230 for the settle, which will get the bulls aroused again," said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York. Gold has risen almost 20 percent since hitting near six-year lows in December for its steepest gains in years. Platinum was down 0.17 percent to $945 per ounce and palladium was down 1.4 percent to $504.8.
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