BLBG:Gold Swings Between Gains and Losses on Physical Demand, Dollar
Gold swung between gains and losses in London amid signs of improving physical demand and as a stronger dollar curbed demand for an alternative investment.
Physical gold dealers in India, last year’s biggest buyer, cited a “notable pickup” in the past couple of sessions amid lower prices there, Barclays Plc said today in a report. Indian consumers usually boost purchases before the wedding season and religious festivals later this year. The U.S. Dollar Index, a measure against six major trading partners, climbed near a six- week high.
“Gold has been trading lower as it follows the U.S. dollar appreciation,” Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland, said today by e-mail. “Gold is still range-bound, lacking any upside drivers above $1,725 an ounce. The lower range of $1,700 is perceived as a good support.”
Bullion for immediate delivery added 40 cents to $1,711.70 an ounce by 9:28 a.m. in London. Prices gained as much as 0.4 percent and fell as much as 0.1 percent. December-delivery futures were little changed at $1,712.20 on the Comex in New York.
CME Group Inc., the owner of Comex, said the New York trading floor will be closed today as Hurricane Sandy headed toward the city.
Holdings in gold-backed exchange-traded products gained 0.3 metric ton to a record 2,585.4 tons on Oct. 26, data compiled by Bloomberg show. Gold prices reached a 10-month high of $1,796.05 on Oct. 5 as central banks from Europe to China to the U.S. pledged more stimulus to boost economies.
Bank of Japan (8301) board members are facing political pressure to ease policy as data last week showed consumer prices fell for a fifth-straight month, making the central bank’s 1 percent inflation goal elusive. All but one of 27 economists surveyed by Bloomberg expect officials to increase stimulus tomorrow.
Silver for immediate delivery fell 0.5 percent to $31.92 an ounce. Platinum was little changed at $1,545.49 an ounce. Palladium declined 0.4 percent to $595.50 an ounce.
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
