Nov. 22 (Bloomberg) -- Gold rose as central banks joined investors in adding to holdings and the euro strengthened against the dollar as regional leaders met today. Palladium rose to a six-week high.
Gold rallied 11 percent this year as investors and central banks bought bullion to diversify assets. Holdings in ETPs backed by bullion rose to a record 2,605.318 metric tons yesterday, data compiled by Bloomberg show. Kazakhstan, Turkey and Russia boosted reserves in October, according to data on the International Monetary Fund’s website, joining Brazil, which raised holdings to the highest in more than 11 years.
“We think this is a positive signal for the market and expect moderate price gains in the days ahead,” Tobias Merath, head of commodities and alternative investments research at Credit Suisse AG’s private banking unit, wrote in a report today, referring to the central bank purchases. “The focus will be on events in Europe.” U.S. markets are closed for Thanksgiving.
Spot gold rose as much as 0.2 percent to $1,732.87 an ounce before trading at $1,729.55 at 3:33 p.m. in New York. Gold futures for delivery in December rose 0.1 percent to $1,729.50 an ounce in electronic trading on the Comex in New York.
Gold at the afternoon “fixing,” used by some mining companies to sell output, increased to $1,731 an ounce in London from $1,729.75 this morning.
Gold also gained as the euro rose to the highest in almost three weeks against the U.S. dollar as leaders of the 27 European Union member nations gathered today for budget talks. Finance ministers from the 17-nation currency bloc will resume talks on aid for Greece next week.
Silver was little changed at $33.345 an ounce, after gaining as much as 0.3 percent to $33.4525, the highest since Oct. 15. Platinum for immediate delivery gained 0.3 percent to $1,581.60 an ounce, and palladium advanced 1.4 percent to $655.60 an ounce, after rising to $657.88, the highest since Oct. 10.
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