NEW YORK, Oct 25 (Reuters) - COMEX gold rebounded from a two-month low early Friday as shorts covered on the back of surprisingly weak U.S. economic data and the bearish signals they sent to Wall Street.
"We're going right off the Dow Jones from yesterday. We opened higher and we're kind of just floating around right now," a floor broker said.
September orders for durable goods fell 5.9 percent, a bigger drop than the 1.8 percent expected on Wall Street.
The market is nervous about a double-dip recession and stocks initially fell on the news, driving some investors into safe-havens and helping gold extend gains posted overnight.
December gold at 1018 EDT was up $2.40 at $313.70 an ounce, trading from $311.70 to $314.80. Gold was already recovering from its fall to a two-month low of $309.10 Thursday, as shorts took profits and physical buying kicked in below $310.
"We opened firm anyway," said a commission house broker. "But when durables came out and stock market futures went down, gold definitely popped up to that $314.60 area. So there was a little assist from durable goods."
The broker said there was solid resistance around $315, in front of stop-loss buy orders that could accelerate the rally if gold moves above the $315.50 area.
Spot gold was quoted at $313.40/90, up from Thursday's close at $309.80/0.30. London dealers fixed Friday's afternoon spot reference price at $313.00.
The Dow Jones industrial stock average was off about 10 points in midmorning trade, but Wall Streets bullish influence on gold was neutralized with the Nasdaq index up 5.6 points.
The dollar, meanwhile, was slightly softer at $0.9783/88 per euro, making gold a touch cheaper for European investors in local terms.
December silver rode gold's coattails up 4.3 cents to stand at $4.405 an ounce, within a $4.365 to $4.415 range. Spot silver was at $4.40/42, up from $4.36/38 late Thursday. Silver fixed at $4.375.
NYMEX January platinum was up $4.80 at $585 an ounce. Spot platinum was quoted $589/594.
December palladium was up $1.50 at $312 an ounce after setting a contract low at $309 Thursday. Spot palladium fetched $308/320.