BLBG:Gold Gains for First Day This Week as Slump Spurs Buying
Gold rose for the first time this week in London on speculation investors will boost purchases after the metal’s biggest three-day drop in almost two months.
Prices fell to $1,736.95 an ounce yesterday, the lowest price since Sept. 13, on signs Europe’s economy is still worsening. The Shanghai Composite of shares rallied as much as 3.2 percent on speculation China may take more steps to boost growth. Gold is heading for the best quarterly gain in two years as the U.S., Europe and Japan announced quantitative easing.
“Investors and consumers are adapting to higher gold prices and will take advantage of any price dips,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. “The spotlight is still on quantitative easing and how that benefits gold.”
Bullion for immediate delivery climbed 0.2 percent to $1,755.80 an ounce by 10:23 a.m. in London. Prices are up 9.9 percent this quarter, 3.8 percent this month and 12 percent this year. The futures for December delivery advanced 0.3 percent to $1,758.10 an ounce on the Comex in New York.
Prices in London on Sept. 21 climbed to a six-month high of $1,787.52 an ounce. Holdings in exchange-traded products dropped yesterday for the first time since Aug. 31, falling 0.4 percent to 2,542.3 tons, data compiled by Bloomberg show.
Silver gained 0.2 percent to $34.02 an ounce, platinum rose 0.2 percent to $1,638.75 an ounce and palladium rose 0.3 percent to $631.50 an ounce.
To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net
