BLBG:Gold Gains in London as China Demand Outlook Lifts Commodities
Gold rose in London alongside commodities from crude oil to copper after better-than-expected China trade data spurred optimism that demand for raw materials will remain robust.
The Standard & Poor’s GSCI Index of 24 raw materials rose to the highest level in a week after China’s exports jumped 14.1 percent last month, almost triple the 5 percent gain predicted in a Bloomberg News survey. Data this week showed China’s net imports of gold rose to a seven-month high in November, while volumes traded on the Shanghai Gold Exchange jumped.
“Gold is trading a little higher along with the rest of the commodities complex,” said Bjarne Schieldrop, the Oslo- based head of commodity research at SEB AB. “Of course gold does get an impact from stronger Chinese data fueling expectations for higher jewelry demand.”
Gold for immediate delivery rose 0.1 percent to $1,659.85 an ounce by 9:37 a.m. in London. Gold for February delivery gained 0.3 percent to $1,660.10 an ounce on the Comex in New York.
“Gold continues to trade in a tight range as lower prices tend to attract buyers, while no one’s chasing the rallies,” said Huang Fulong, an analyst at CITICS Futures Co., a unit of China’s largest listed brokerage. “A recovery in China should see more physical purchases ahead of the Lunar New Year.”
Demand in the country typically picks up before Christmas and lasts through the Lunar New Year in February.
Gold has retreated 0.9 percent since the beginning of the year as the U.S. Dollar Index, a gauge against six counterparts, climbed 1 percent.
Silver for immediate delivery rose 0.2 percent to $30.435 an ounce. Holdings in exchange-traded products climbed to an all-time high of 19,043.07 metric tons yesterday.
Platinum for immediate delivery gained 0.6 percent to $1,607.50 an ounce. One ounce of platinum bought as much as 0.9692 ounce of gold today, the most since April. The so-called ratio has risen for eight days, the longest period of advance since December 2009. Palladium traded 1.2 percent higher at $695.60 an ounce, and earlier today reached $700.50, the most expensive since Jan. 3.
To contact the reporters on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
