Gold’s longest buying spree since 2010 drives metal to near high

San Francisco (Mar 8)  Holdings of the metal in exchange-traded funds rose for an 18th straight trading day, the most since May 2010, jumping 1.3 metric tons to 1 725.1 tons, according to data compiled by Bloomberg as of Tuesday. That’s the highest level in 18 months.

Gold for immediate delivery gained 0.5% to $1 273.14 an ounce, near the highest since February 2015, by 11:05am in London, according to Bloomberg generic pricing.

Prices are correlated with buying and selling of ETFs, moving in the same direction in all but two months in the past year. Holdings have soared 18% this year, the fastest pace since April 2009, after they sank 44% from 2013 to 2015 as prices declined.

“There’s a mosaic of factors driving investors back into gold, and in that whole mosaic, I can’t see a single reason to sell,” Andy Pfaff, chief investment officer for commodities at MitonOptimal Group, said by phone from Cape Town. “We’ll have a look above $1 300, it’s just a question of when.”

Gold is up 20% this year, on course for its first quarterly gain since June 2014, according to Bloomberg generic pricing. The metal rose 0.7% to $1, 73.90 and volumes were 32% above the 100-day average for the time of day on the Comex in New York.

The European Central Bank is widely expected to deliver a package of easing measures at a March 10 meeting to revive euro-area growth and inflation.  Platinum held near a five-month high, gaining 0.2% to $1 001.93 an ounce. Palladium fell 1.4% to $570.20 an ounce and silver dropped 0.2%.

Source: MineWeb