CHICAGO, July 7 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange rebounded on Wednesday, paring earlier losses, as its price touched the lowest level since late May and attracted interest from investors. Silver and platinum both extended gains.
The most active gold contract for August delivery rose 3.8 U.S. dollars, or 0.3 percent, to finish at 1,198.9 U.S. dollars.
China's State Administration of Foreign Exchange said on Wednesday that gold will not be a major investment channel of China's foreign exchange reserves, due to limited market capacity and wide price fluctuations. Gold eased earlier in the session and dropped to as low as 1,185.00 dollars per ounce, with sentiment undermined by the statement.
Meanwhile, a report released on Wednesday indicated that central banks around the world have sold their gold to the Bank for International Settlements at a record pace, also created uncertainty among gold investors and weighed on gold price, as the bank has bought 349 metric tons of gold since December 2009, allowing central banks around the world to raise 14 billion dollars.
Gold recovered during mid-session, as many traders found the lowest price in six weeks suggesting that the selling was overdone, and took the chance to re-enter the gold market. The weaker dollar and the strong rally in stocks market Wednesday have both added upward pressure on gold.
September silver climbed 14.3 cents, or 0.8 percent, to settle at 18.0 dollars per ounce, October platinum rose 7.7 dollars, or 0. 5 percent, to settle at 1,526.4 dollars per ounce.
