BLBG: Gold Rallies From 2-Week Low as Swiss, China Data Signal Demand
Gold rose, rebounding from a two-week low yesterday, on signs of increased physical demand.
Swiss gold exports rose to the highest level this year and flows from the U.K. suggest Swiss refineries are working at full capacity to meet demand from Asia, UBS Group AG said in a note today. Trading of the Shanghai Gold Exchange’s benchmark bullion spot contract jumped to the highest since April 2013.
“Physical demand was healthy,” David Govett, head of precious metals at Marex Spectron said in an e-mailed note. “This will keep a floor under gold for the rest of the month.”
Gold for immediate delivery rose 1.7 percent to $1,209.74 as of 10:51 a.m. in London. The metal for February delivery climbed 1.2 percent to $1,208.50 on the Comex in New York.
Bullion fell in London yesterday amid concern that the Federal Reserve is moving closer to raising interest rates, cutting the metal’s appeal as a store of value. Fed officials dropped a pledge to keep borrowing costs near zero percent for a “considerable time,” replacing it with a promise to be “patient.”
Switzerland exported 232.3 metric tons last month, government data showed today. India, China and Hong Kong accounted for 63 percent of the overseas shipments.
Silver for immediate delivery added 2.6 percent to $16.157 an ounce. Platinum advanced 1.6 percent to $1,212.38 an ounce, halting six days of losses. Palladium gained 1.1 percent to $786.95 an ounce.
To contact the reporter on this story: Laura Clarke in London at lclarke24@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net Nicholas Larkin
