Gold gained in London on signs of increased demand from investors to protect their assets. The price for immediate delivery-precious metal touched $ 1,254.73 an ounce yesterday, its highest level since June 28 and within 1 percent of the all-time high. Gold at the 10 companies on the exchange-traded products.
“Gold will struggle at this level,” said David Thurtell, analyst at Citigroup Inc. in London, said. “It is technically the most traded commodity in the world. People look at the current record level just below that and try to sell.”
Gold climbed as much as $ 5.35, or 0.4 percent, to $ 1,249.65 an ounce, and traded at $ 1,246.40 at 11:36 am London time. December-delivery futures added 10 cents to $ 1,248.20 on the Comex in New York.
Bullion has jumped nearly 14 percent this year to a record $ 1,265.30 on June 21. The prize is ready for a 10th annual profit on concern that economic recovery could slow, hurting currencies and equities. The U.S. Dollar Index, a barometer of the U.S. dollar against six other funds, so much has risen from 0.1 percent and fell 0.2 percent as of 24:07 London time.
In the second quarter, investors bought 291.3 tons in exchange traded funds, boosting demand by 36 percent, according to the producer-funded World Gold Council. Gold ETFs are backed by the metal and trade like stocks, allowing investors to hold the commodity without taking physical delivery.
U. S. Data in Focus
SPDR Gold Trust holdings in the largest ETF backed by bullion, rose for the second day at 1304.03 tons yesterday, according to figures on the company website. Holdings hit a record 1320.44 tons in June.
Bullion rose to $ 1,247.75 an ounce in the morning “fixing” in London, which some mining companies to sell production, from $ 1,246.50 in the afternoon fixing yesterday.
The European Central Bank announces its decision on interest rates at 12.45 London time. The current record-low rate of 1 percent is considered “bullish for gold as the opportunity cost, the lack of efficiency, the possession of gold is negligible,” Dublin-based analysts at brokerage Core Gold Ltd. wrote in a report today.
Analysts raised their forecasts for 2011 gold more than any other precious metals over the past two months, according to data from Bloomberg. Gold may rise to as high as $ 1,500 next year, according to the median in a Bloomberg survey of 29 analysts, traders and investors.
“Still worried”
Bullion reversed early gains yesterday, losing 0.3 percent after a report that faster-than-expected growth in U.S. production has increased confidence in the recovery. Production in China grew at a faster pace in August, according to figures issued yesterday.
“Although there are positive figures from the U.S. yesterday, some investors are still afraid that some data later this week may show the economy slowing,” said Hwang Il Doo, a Seoul-based senior trader at KEB Futures Co. “The demand for gold ETFs is lively. ”
Precious commodities including gold are set for a “moderate” second half due to a lack of “systemic risk,” Citigroup Inc. analyst Jon entails Heil wrote in a report today.
Citigroup economists predict a slow growth without systemic risks “, which suggests that there will once more a level playing field between the base metals and precious commodity,” said Heil carries.
Immediate delivery silver rose 0.4 percent to $ 19.43 per ounce, while platinum rose 0.4 percent to $ 1,540.20 an ounce and palladium were little changed at $ 519.25 per ounce.
source:bloomberg
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