Oil advanced in New York after the biggest drop in almost two weeks as a report showed stockpiles declined in the U.S., the world’s biggest crude user, and the Israeli army continued its bombardment of Gaza. Anything in the Middle East takes precedence. It’s a kneejerk reaction to drop 2.8 percent, I’m sure the troops are still there, rude for January delivery gained as much as 65 cents to $87.40 a barrel.
Gold was little changed after advancing to the highest level in more than a week as investors increased holdings in exchange-traded products to a record. Silver traded near a one-month high. Gold has advanced 11 percent this year as central banks joined investors in adding bullion to diversify assets. The U.S. Mint sold 63,000 ounces of gold coins so far in November, exceeding the 59,000 ounces for all of October, at that pace; total sales for the month would be 101,769 ounces, up 148 percent from a year earlier.
Central banks added 373.9 tons to reserves by the third quarter of this year, Market participants have been buying gold as the U.S. stimulatory and low interest rate environment has been supportive, Gold prices should continue to rise on the basis of healthy physical and investment demand, especially from China, as well as the longer term trend of central bank purchases. Spot gold traded at $1,725.60 an ounce
