Gold rises on bargain hunting

Gold rose as bargain-hunting investors bought contracts, convinced that continuing economic uncertainty will bolster the value of precious metals.Gold for December delivery rose $25.60, or 1.6 percent, to $1,641.60 an ounce. December silver gained 51.3 cents, or 1.7 percent, to close at $30.352.Gold prices have been sliding on concerns that a rally that began this summer was unsustainable. Gold hit a high of $1,891.90 an ounce on Aug. 22 and has fallen since then. As gold flirts with $1,600 an ounce, it has become an attractive investment for those who think the European debt crisis will continue to roil currency markets and the global economy. Gold is often seen as a safe-harbor investment when the economy is uncertain.A key factor underlying golds value is continued strife in Europe, where finance ministers are struggling to settle on a rescue plan for debt-laden countries like Greece, said Rohit Savant, senior commodities analyst with CPM Group in New York.As long as that uncertainty is around the market, that would provide support for gold as a safe haven, Savant said.Industrial metals fell Tuesday. A rising stock market boosted the outlook for demand in the worlds factories, which use metals like copper and palladium in manufacturing. On Wall Street, the Dow Jones Industrial Average finished up 1.2 percent.Copper for December delivery gained 0.25 cents, or 1 percent, to end at $3.1060 a pound. January platinum rose $14.30, or 1 percent to finish at $1,482.90 an ounce and December palladium rose $6.20, or 1 percent, to $570.35 an ounce.