BLBG: Gold Little Changed in Asia Before G-20 Leaders Summit Convenes
Gold traded little changed in Asia ahead of a gathering of world leaders for the Group of 20 summit to consider an agenda aimed at ending the global economic slump and avoiding a repeat of the financial crisis.
Investors have boosted gold holdings as a haven amid the economic turmoil, with assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, rising about 45 percent this year. U.S. President Barack Obama and his G-20 counterparts, responsible for 85 percent of the world economy, are scheduled to release a statement about 3 p.m. London time.
“The degree to which the markets judge the G-20 meeting a success is likely to influence near-term gold prices,” James Steel, an analyst at HSBC Securities, wrote in an e-mailed note.
Gold for immediate delivery was little changed at $928.19 an ounce at 1:31 p.m. in Singapore. Bullion rose to $933.57 yesterday as the dollar declined, before ending at $927.40, “clipped by a decline in investor risk aversion as the equity markets traded higher,” Steel said.
The benchmark MSCI Asia Pacific Index rose today, following a gain in U.S. stocks as better-than-expected economic reports in the U.S. stoked speculation global growth is recovering. Gold has risen 5.2 percent this year as the index slid 4.2 percent. The dollar was at $1.3272 per euro from $1.3249 late yesterday.
Jewelry Demand
“Weak jewelry demand is reflected in low bullion imports by jewelry-producing nations,” said Steel. “Without an increase in gold jewelry demand, further price rallies may be difficult to sustain.”
Turkey, the world’s third-largest manufacturer of gold jewelry in 2007, imported 40 kilograms (1,286 troy ounces) of gold last month, the Istanbul Gold Exchange said in a report on its Web site yesterday. The country imported no gold in January or February, according to data from the exchange.
Gold imports by India, the world’s biggest buyer, were near “zero” in March as a weak currency and record prices deterred jewelry buyers, a traders’ group said March 31. India imported 21 metric tons of gold in March last year.
Among other precious metals for immediate delivery, silver rose 0.2 percent to $13.105 an ounce, platinum added 0.4 percent to $1,143 an ounce and palladium gained 1 percent to $221 an ounce as of 1:33 p.m. in Singapore.
