NEW YORK (MarketWatch) -- Gold futures rallied Monday, breaking a five-session losing streak, as physical demand, technical buying and rising crude-oil prices boosted the precious metal.
Gold for August delivery closed up $8.70 at $659.0 an ounce on the New York Mercantile Exchange.
"Gold prices managed a climb back from the abyss," said Jon Nadler, metals analyst at Kitco Bullion Dealers. "Sentiment continues to be skittish, as conditions are not there for a full reversal; however, oversold indicators gave some brave souls a chance to make a buck playing the long side today."
James Moore, metals analyst at TheBullionDesk.com, said that "bargain hunting and good physical demand has lifted gold."
On Friday, gold futures tumbled in a broad commodities sell-off, as the dollar rallied against other major currencies, damping investor appetite for metals. The metal closed down $14.90 at $650.30 an ounce, logging a loss of $26.60 on the week.
Silver and copper futures plunged about 3%, while energy futures also fell across the board, with crude oil tumbling 3%.
"Weakness was seen across the metals sector Friday with the precious metals bearing the brunt as fund players cut their positions in search of better returns from equity and treasury products," Moore said.
"The week ahead is likely to be pivotal for mid-term direction, particularly with the market heading towards the summer months when traditionally liquidity thins and physical demand slows," Moore said.
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