Gold futures rose for the first time in three sessions on signs of increasing demand in China.
In May, imports by China from Hong Kong jumped sixfold to 75,635.7 kilograms (75.6 metric tons) from a year earlier, Hong Kong government data showed. The nation “remains the most important player on the global gold market,” Commerzbank AG said in a report. The dollar fell from a five-week high against a basket of currencies, boosting the appeal of the metal as an alternative investment.
“Higher physical demand in China is good news for the market,” Sterling Smith, a commodity analyst at Citigroup Inc.’s institutional client group in Chicago, said in a telephone interview. “The mildly weak dollar is also positive.”
Gold futures for August delivery rose 0.6 percent to settle at $1,589.10 an ounce at 1:36 p.m. on the Comex in New York. The price fell 2.6 percent in the previous two sessions.
The World Gold Council has forecast that China will top India this year as the world’s largest consumer because rising incomes will bolster demand.
Silver futures for September delivery jumped 1.9 percent to $27.444 an ounce.
On the New York Mercantile Exchange, platinum futures for October delivery dropped 0.2 percent to $1,445.90 an ounce. Palladium futures for September delivery advanced 0.6 percent to $583.90 an ounce.