Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Gold Advances as Holdings in ETP Expand to Record After Stimulus

Don't Miss Out —
Follow us on:
Gold Advances as ETF Holdings Expand to Record After Stimulus
Investors have put a total of $1 billion over the past six weeks into its gold products, ETF Securities Ltd. said in a report e-mailed yesterday. Photographer: Kerem Uzel/Bloomberg

Oct. 4 (Bloomberg) -- Gold rose for a second day as assets in exchange-traded products backed by the metal climbed to a record amid speculation that stimulus by the world’s central banks will boost demand for an inflation hedge.

Spot gold gained as much as 0.3 percent to $1,783.45 an ounce and traded at $1,783.43 as of 2:47 p.m. in Singapore. Bullion-backed holdings in ETPs increased 4.1 metric tons to an all-time high 2,554.335 tons as of Oct. 3, according to data tracked by Bloomberg.

The European Central Bank and the Bank of Japan will hold policy meetings separately today after expanding stimulus last month. The ECB pledged an unlimited bond-purchase program Sept. 6, while the Japanese central bank expanded its asset-purchase fund Sept. 19. The U.S. Federal Reserve announced a third round of debt-buying Sept. 13. China’s National Development and Reform Commission approved last month plans to build roads and subways, estimated to cost $158 billion by Nomura Holdings Inc.

“We’ve seen some pretty broad-based commitment if not implementation from the U.S., the EU and China -- that’s bound to be good for gold,” Brenton Saunders, who helps manage $1 billion at Sydney-based Taurus Funds Management Pty, said by phone today. “We are also seeing a lot more of physical gold purchases outside of ETFs.”

Bullion for December rose 0.2 percent $1,783.50 an ounce. Futures rallied 11 percent last quarter, the best since 2010.

Investors have put a total of $1 billion over the past six weeks into its gold products, ETF Securities Ltd. said in a report e-mailed yesterday.

Cash silver climbed 0.6 percent to $34.79 an ounce. Spot platinum rose 0.4 percent at $1,694.74 an ounce and palladium advanced 0.8 percent at $658.15 an ounce.

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.