BLBG:Gold Set for Monthly Gain as Palladium in Best Run Since 2010
Gold headed for a monthly gain as holdings in exchange-traded funds climbed to the highest ever. Palladium is poised for the best monthly advance in two years.
Spot gold added as much as 0.3 percent at $1,730.90 an ounce before trading at $1,729.79 at 2:30 p.m. in Singapore. That would be a 0.5 percent gain for the month. Palladium is set for a 14 percent rally in November, the most since December 2010.
Gold Holdings in exchange-traded products expanded to a record 2,619.435 metric tons yesterday, according to data tracked by Bloomberg. The increase shows unabated investor demand for the metal that is set for 12th year of gains, Morgan Stanley Chief Metals Economist Peter Richardson said.
“Gold is still in the accelerated uptrend that it has been in for several years,” Richardson said by phone from Melbourne.
Gold and silver have rallied on optimism that asset purchases by central banks from the U.S. to Japan announced since September may trigger inflation that will boost demand as a store of value against depreciating currencies.
Precious metals gains may be capped by concerns about failure among U.S. lawmakers to agree on a solution over a national budget, said Steven Dooley, Melbourne-based head of research at brokerage Forex Capital Trading Pty Ltd.
Treasury Secretary Timothy Geithner offered Republican House Speaker John Boehner a proposal to avert the end-of-the- year so-called fiscal cliff that would trade $1.6 trillion in tax increases for $400 billion in unspecified entitlement- program cuts, a Republican aide said. Boehner said yesterday that no progress was being made in the budget talks.
Gold for February delivery rose 0.1 percent at $1,731.30 an ounce on the Comex in New York, 0.7 percent higher for the month.
Cash platinum rose 0.3 percent at $1,618 an ounce, heading for a 3.1 percent monthly advance. Silver climbed 0.2 percent to $34.3006 an ounce, poised for a November gain of 6.4 percent. Palladium gained 0.6 percent to $688.50 an ounce.
To contact the reporter on this story: Chanyaporn Chanjaroen in Singapore at cchanjaroen@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
