Gold Turns Positive, Gold Shares Rally

Gold futures turned positive early Monday afternoon, with the COMEX December contract climbing from an intra-day low near $1,735 per ounce to $1,758.60 as of 12:50pm ET.

The rebound in gold coincided with further losses in the U.S. dollar against a basket of foreign currencies.  The U.S. Dollar Index (DXY) extended its slide by 1.0% to 73.835 this afternoon.

The yellow metal’s move higher fueled a rally in gold shares, as the AMEX Gold Bugs Index (HUI) jumped 1.5% to 572.73.  In doing so, the HUI came within a fraction of turning positive year-to-date – a feat it has been unable to sustain on several other occasions this year.

Notable advancers in the gold sector on Monday included Eldorado Gold (EGO), IAMGOLD (IAG), and Royal Gold (RGLD) – which rose 1.2%, 1.3%, and 0.8%, respectively.