Gold Closes Volatile Session Higher

Gold closed higher again on Thursday, adding to gains from the previous session. April-dated gold finished at $914.00, up $9 a pound. The precious metal climbed as high as $915.20 in electronic trading, but then dipped below its flat-mark before a mid-morning comeback. The metal snapped a six-session losing streak on Wednesday, moving back above the $900 mark. Gold closed at $905 an ounce, up $14.70 on the session. The metal climbed as high as $912 in mid-day trading as traders demonstrated they feel the recent slump was overdone. The metal plunged on Tuesday in U.S. trading and closed below $900 an ounce for the first time in more than two weeks. April-dated gold finished at $890.30, down $19.10 on the session. Prices slipped as low as $888.40 in the early going, gold's lowest level since Jan. 23. Gold dropped on Monday in U.S. trading amid some profit-taking after a recent rate cut-led rally. Bullion for March delivery closed the session at $891.40, down $18 on the session. Last week, gold had climbed as high as $941.80, just off its record high of $942.20, reached earlier last week.In economic news Wednesday morning, the Department of Labor released its preliminary report on productivity and unit labor costs in the fourth quarter, showing that productivity growth during the quarter came in well above economist estimates. The report showed that labor productivity increased by 1.8 percent in the fourth quarter compared to 6.0 percent growth in the third quarter. Economists had been expecting a much more modest increase of about 0.5 percent. The Labor Department added that unit labor costs rose 2.1 percent in the fourth quarter following a 1.9 percent decrease in the previous quarter.Meanwhile, pending home sales fell more than economists had been expecting in the month of December, according to a report released by the National Association of Realtors on Thursday, indicating continued weakness in the housing market. The National Association of Realtors said its pending home sales index fell 1.5 percent to a reading of 85.9 in December from a downwardly revised reading of 87.2 in November. Economists had been expecting a more modest decrease of about 1.0 percent.