Gold Futures Rise Most in 3 Weeks on Central Bank Buying
Brazil added to its gold reserves for the first time since December 2008, and Turkey also raised its holdings, data on the International Monetary Fund’s website showed. India tends to buy more at this time of year because of jewelry demand for the wedding season and festivals. Prices fell below $1,700 an ounce yesterday for the first time since Sept. 7, which may have sparked some physical buying.
“More and more central banks are getting involved in the gold market,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “We are seeing some value buying after prices slumped, especially in India.”
Gold futures for December delivery advanced 0.7 percent to settle at $1,713 at 2 p.m. on the Comex in New York, the biggest gain for a most-active contract since Oct. 4.
The festival season in India began with Dussehra yesterday and ends in November with Diwali, followed by weddings.
“Physical buying is starting on a strong footing today,” Edel Tully, an analyst at UBS AG in London, said in an e-mailed report.
Silver futures for December delivery rose 1.4 percent to $32.078 an ounce on the Comex, the biggest advance since Sept. 27.
On the New York Mercantile Exchange, platinum futures for January delivery climbed 0.4 percent to $1,568.80 an ounce, snapping a five-session slump, the longest since Aug. 30.
Palladium futures for December delivery gained for the first time in six sessions, surging 2 percent to $604.50 an ounce.
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