Gold price pops amid bargain-hunting

CHICAGO - Gold futures on the COMEX Division of the New York Mercantile Exchange regained some steam on Wednesday, as bargain hunters jumped into the market, easing a little bit of the recent extreme pressure.

The most active gold contract for December delivery jumped $25.6, or 1.6 percent, to $1,641.6 per ounce.

"The Gold market traded a very technical range today and held a very key support level ($1,590 to $1,595). Holding this support level appeared to bring fresh buyers into the market," said Mike Daly, gold specialist with PFGbest here in Chicago.

"Higher crude oil prices and the ever present fragility in Greece and the Euro region sent investors to 'safe haven alternative' investments, primarily the precious metals," Mike added.

But some analysts pointed out that recent volatile trading in gold market dimmed some of the shine of gold as a safe haven asset.

Stocks were also rallied from a new one-year low as investors may be looking at cheap stock prices as well as gold and silver as bargain buying opportunities.

The precious metal pared some gains, after report released Wednesday showed US job growth in the private sector continued at a modest pace in September, led by the service-producing sector and small businesses.

Silver for December delivery climbed 51.3 cents, or 1.7 percent, to $30.352 per ounce. Platinum for January delivery jumped $14.3, or 0.9 percent, to $1,482.9 per ounce.