Gold Climbs on Demand From China After One-Week Holiday
London (Oct 8) Gold rose in London as buyers returned after a one-week holiday in China, the largest consumer of the metal. Platinum also advanced.
Bullion slumped 2.2 percent last week, erasing gains for the year as signs the U.S. economy is improving added to the case for policy makers to raise interest rates. China was on holiday since Oct. 1 through yesterday.
“Consumers who are faced with a local gold price which is 13 percent below the peak this year may be finding value here,” Edel Tully, an analyst at UBS AG in London, said in an e-mailed report today. “Physical demand is returning.”
Bullion for immediate delivery climbed 0.9 percent to $1,220 an ounce by 10:27 a.m. in London. Prices climbed for a third day, the longest streak since Aug. 28. Prices dropped on Oct. 6 to $1,183.24, the lowest since Dec. 31. Futures for December delivery rose 0.5 percent to $1,218.80 an ounce on Comex in New York.
The Federal Open Market Committee will release minutes from its Sept. 16-17 meeting at 2 p.m. Washington time. Investors have been concerned the central bank may raise interest rates sooner than anticipated as the U.S. economy improves. The anticipation of tighter U.S. monetary policy caused gold prices to sink 28 percent last year.
Platinum for immediate delivery rose 1.6 percent to $1,278.25 an ounce after tumbling on Oct. 6 to $1,190.25, the lowest since 2009. Palladium advanced 1.3 percent at $796.13 an ounce. Silver jumped 1.7 percent to $17.4705 an ounce.