Gold Rallies 2%: Making the Case to Buy Gold Now

Gold prices rose higher to recoup much of what they lost over several past trading sessions, as traders assessed U.S. economic data, including growth in U.S. private-sector jobs, for clues to when the Federal Reserve may ease back on its bond-buying stimulus program.

“What we are seeing today may prove to be the early stage of another substantial short-covering rally into year-end,” said Peter Grant, chief market analyst at precious-metals dealer USAGOLD, pointing to gold’s summer rebound.

Gold prices fell to lows of $1,200 an ounce in June, then rallied to hit highs around $1,420 by late August, FactSet data show — that’s a jump of roughly 18%.