BLBG:Gold Near One-Week High as ETP Assets Extend Increase to Record
Gold traded near a one-week high as investors boosted holdings in exchange-traded products to a record for a third day, countering a stronger dollar.
Spot gold was little changed at $1,733.55 an ounce at 9:16 a.m. in Singapore after reaching $1,735.62 yesterday, the most expensive since Nov. 12. The metal climbed 1.1 percent yesterday alongside other commodities including oil and copper as optimism for a U.S. budget deal and unrest in the Middle East spurred demand for the metal as an alternative investment.
Gold has risen 11 percent this year as investors added bullion to hedge against financial market turmoil, depreciating currencies and the threat of inflation. Holdings in ETPs backed by bullion rose to 2,604.207 metric tons yesterday, data compiled by Bloomberg show.
“The perception of how U.S. budget negotiations are going will continue to impact sentiment in the gold market,” said Xiang Nan, an analyst at CITICS Futures Co., a unit of China’s biggest listed brokerage. “Europe’s problems seem to have resurfaced once again and in the very near term, a weaker euro may weigh on gold. ETF flows remain encouraging.”
Gold for December delivery was little changed at $1,733 an ounce on the Comex in New York. The dollar strengthened 0.2 percent versus the euro after Moody’s Investors Service lowered France’s government bond rating, renewing concern the region’s debt crisis is deepening. Euro-area finance ministers are set to meet today in Brussels to discuss aid for Greece. Oil and copper declined today.
Cash silver was little changed at $33.1625 an ounce, after climbing to a one-month high of $33.22 yesterday. Spot platinum was also little changed at $1,578.25 an ounce, after rallying 1.2 percent yesterday, the most in a month. Palladium was unchanged at $642.50 an ounce.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
