Related News:
Gold Futures Advances on Speculation Demand for Commodities Will Increase
Gold futures rose to a one-week high on speculation that a growing global economy will boost demand for raw materials.
Equities in Asia, Europe and the U.S. advanced, and the Reuters/Jefferies CRB Index of 19 commodities headed for the biggest four-session rally in almost a year. Before today, gold futures dropped 6.5 percent from a record $1,266.50 an ounce on June 21.
“Gold is inching its way back up,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “There’s talk of growth again, and gold is playing catch-up to the industrial complex.”
Gold futures for December delivery gained $1.50, or 0.1 percent, to settle at $1,185.40 at 1:35 p.m. on the Comex in New York. Earlier, the metal reached $1,193.90, the highest level for a most-active contract since July 26. The price has gained 8.1 percent this year.
The MSCI World Index of equities jumped to the highest level since May 13. Crude oil topped $81 a barrel, and copper rose to a three-month high.
Hedge funds and other large speculators increased their net-long position by 5.9 percent in Comex gold futures in the week ended July 27, according to U.S. Commodity Futures Trading Commission data. That marked the first increase in a month.
Demand increased in India, the biggest world’s biggest importer, after prices dropped 5 percent in June.
“Metal continues to flow toward countries such as India and Turkey in anticipation of a rise in seasonal demand,” Walter de Wet, the head of commodities research at Standard Bank Plc in London, said in a report.
Euro Gains
Gold’s gains were limited because some investors sold the metal and purchased euros. The currency rose as much as 1.1 percent against the dollar.
Gold priced in euros reached a record in early June amid Europe’s sovereign-debt crisis.
“On the rallies, you’ve got some investors moving out of gold and back into euros,” McGhee of Integrated Brokerage Services said.
Silver futures for September delivery rose 41.6 cents, or 2.3 percent, to $18.419 an ounce on the Comex.
Platinum futures for October delivery gained $25.40, or 1.6 percent, to $1,602.20 an ounce on the New York Mercantile Exchange.
Palladium futures for September delivery advanced $15.85, or 3.2 percent, to $515.85 an ounce.
To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.
Rate These Stories
Rate this Page