Other metals also rise, while U.S. dollar drops vs. rivals
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures gained modestly early Thursday, inching closer to $1,400 an ounce as American investors and Chinese buyers demonstrated a fresh interest in the metal.
Gold for February delivery (GCG11 1,393, +4.60, +0.33%) added 30 cents to $1,388.70 an ounce on the Comex division of the New York Mercantile Exchange.
Other metals tracked gold higher.
SPDR Gold Trust (GLD 135.85, +0.47, +0.35%) , the world’s largest exchange-traded fund backed by gold, registered inflows of 7.3 metric tons earlier this week, its first inflow increase since early November.
The fund holds 1,293 metric tons of gold as of Wednesday, the latest day for which statistics are available on its Web site.
The Chinese have imported more than four times as much gold in the 10 months to October than in the full 2009, according to reports citing figures by Shanghai Gold Exchange Chairman Shen Xiangrong.
Bullion imported into China in the January-to-October period totaled 209.7 metric tons, compared to 45 metric tons in all of 2009.
The figures offer a glimpse into China’s growing appetite for gold, reflected by the rush of new investment vehicles designed to satisfy interest in the precious metal, even as the government has yet to adopt the practice of releasing official statistics on the nation’s gold trade.
Earlier this week, Chinese authorities approved the nation’s first fund of funds, which was allowed to invest in overseas ETFs backed by gold. The fund had not made public which ETFs, or which countries, it wished to invest.
Meanwhile, other metals tracked gold higher, with silver for March delivery (SIH11 2,880, +38.20, +1.34%) rising 21 cents, or 0.7%, to $28.61 an ounce.
March copper (HGH11 397.70, +2.95, +0.75%) added 3 cents, or 0.7%, to $3.98 a pound.
Taking some pressure off metals and other commodities, the dollar weakened on Thursday versus key competitors after starting the day on the rise. The dollar index (DXY 80.49, -0.23, -0.28%) , which compares the U.S. unit to a basket of six currencies, recently traded at 80.44 from 80.73 in late North American trade on Wednesday.
