LONDON: Gold edged higher in Europe on Thursday as the weaker dollar supported prices, with trading muted by the onset of the Thanksgiving Day holiday in the United States.
Bullion prices were unaffected by a spate of deadly attacks by gunmen in Mumbai, despite gold’s reputation as a haven from geopolitical risk. Spot gold was quoted at $813.20/815.20 an ounce at 1442 GMT, little changed from $811.75 an ounce late in New York on Wednesday.
A softer dollar tends to benefit gold, which is often bought as a currency hedge. However, weakness in gold’s other main external driver, crude oil, is weighing on prices. Oil fell towards $53 a barrel after US stocks and oil demand data released on Wednesday increased worries over falling consumption. The bullion market largely shrugged off news of the violence in Mumbai, where more than 100 people have been killed and many more remain trapped by gunmen.
Investor demand for bullion-backed exchange-traded funds remains firm, with the world’s largest gold ETF, the SPDR Gold Trust, reporting an inflow of just over three tonnes or half a percent on Nov 26. Spot platinum inched up to $855/865 an ounce from $853.50 in New York late on Wednesday as the weaker dollar lent support, while palladium slipped to $186.50/ 194.50 an ounce from $189.50. Both metals are suffering from a perception that demand from auto manufacturers is likely to remain lacklustre. Carmakers, who use the metals to make catalytic converters, account for around half global platinum and palladium demand. Among other precious metals, spot silver was at $10.22/10.30 an ounce against $10.29. reuters
