TOKYO (MarketWatch) -- Gold futures headed higher in electronic trading Friday afternoon in Asia, extending the gains seen in New York as traders reassessed the recent four-session price drop of nearly $100 an ounce.
Gold for December delivery was up $9 at $1,134.70 an ounce in Asian afternoon trading on Globex. The contract had gained $5.30, or 0.5%, to end at $1,125.70 an ounce Thursday on the Comex division of the New York Mercantile Exchange. See Thursday's Metals Stocks column.
The front-month December contract lost nearly $100, or 8%, in a losing streak that began last Friday and spanned four sessions -- the longest losing streak in six weeks.
On Friday, the more actively traded February gold contract also gained, trading $8 higher at $1,134.20 an ounce.
If February gold doesn't hold at the $1,120 level, prices could test the $1,100 mark, said Charles Nedoss, a senior market strategist at Olympus Futures.
"Gold can work higher, but it really has its work cut out for it in the near term," he said.
Analysts at Credit Suisse said that overall, precious metals prices could have a year-end rally, given "positive seasonal effects and still-low government bond yields."
Even so, "it is questionable whether we will reach new highs before the end of the year," they said in a note to clients issued Friday.
