BLBG:Gold Gains as Dollar, Indian Festivals May Boost Demand
Gold climbed for the first time in three days on signs the start of festivals in India has boosted purchases as a drop in the dollar may add to demand.
The festival season in India, the biggest buyer of gold, began with Dussehra yesterday and ends in November with Diwali, followed by weddings. Indians traditionally buy gold during these months. Gold yesterday declined below $1,700 an ounce for the first time since Sept. 7 as the dollar gained for a second day against the euro. The U.S. currency fell today.
“After India’s festival celebrations yesterday, physical buying is starting on a strong footing today,” Edel Tully, an analyst at UBS AG in London, said in an e-mailed report. “Perhaps now gold has visited the lows would-be buyers can actually consider buying the metal again.”
Gold for immediate delivery advanced 0.8 percent to $1,714.82 an ounce by 11:16 a.m. in London. The futures for December delivery climbed 0.8 percent to $1,715.90 an ounce.
Brazil increased its gold reserves by 1.7 metric tons last month, to 35.3 tons, the first increase since December 2008, data on the International Monetary Fund’s website showed. Turkey’s holdings increased 6.8 tons and Ukraine added 0.3 ton. Turkey’s bullion holdings have increased due to it accepting gold in its reserve requirements from commercial banks.
Silver jumped 1.2 percent to $32.145 an ounce, palladium climbed 1.8 percent to $606.50 an ounce and platinum rose 1.4 percent to $1,581.50 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 at ccarpenter2@bloomberg.net
