(RTTNews) - Gold prices turned higher on Monday as the U.S. markets rebounded, reducing the need to sell commodities for cash. December gold closed at $742.90, up $12.60 for the session. The metal hit as high as $747.80 in mid-day trading. Earlier, the precious metal fell as low as $707 as the U.S. dollar surged against the euro before easing back. The greenback hit a 2 1/2-year high of 1.2333 against the euro as comments from European Central Bank President Jean-Claude Trichet signaled that the ECB is prepared to cut interest rates again in November. Gold usually moves in the opposite direction as the dollar because of its hedge appeal. Traders awaited the Federal Reserve's latest interest rate decision, which is expected on Wednesday. Most experts are looking for another cut in rates amid the ongoing worldwide financial crisis. Gold ended higher for the second straight day after dropping in 10 of 11 sessions. Early on Friday gold hit a yearly low of $681 an ounce before eventually closing higher by $15.60. Despite the mild two-day rally, gold has lost more than $160 from its highest crossing of October. On a long-term basis, the precious metal has lost about 30% from its record $1,033.90 on March 17. On the economic front, a National Association of Realtors report showed that existing home sales rose 5.5 percent to an annual rate of 5.18 million units in September from an unrevised August rate of 4.91 million units. Economists had expected existing home sales to edge up to a 4.95 million unit rate. Meanwhile, oil prices closed a choppy session lower after earlier hitting a 17-month low. Light sweet crude for December delivery fell to $63.22, down 93 cents on the session. Crude dipped as low as $61.30 in overnight trading, its lowest level since May 2007. For comments and feedback: contact editorial@rttnews.com

Source