Gold Futures Advance in New York as Price Decline Lures Buyers
Gold futures advanced for the first time in three sessions as lower prices lured buyers of the physical metal. Silver also gained.
Gold demand in India, the world’s largest buyer, is heading for a quarterly record as imports reach 300 to 400 metric tons, the World Gold Council said in a report today. That’s equal to almost half of the total shipments for all of last year. Prices that dropped 17 percent this year are headed for the second straight monthly loss as some investors lost faith in the metal amid an improving economic outlook and concern that the Federal Reserve may curb its stimulus measures.
“Physical buying in Asia remains strong,” Miguel Perez-Santalla, a vice president at New York-based BullionVault, said in a phone interview. “Today’s news out of the World Gold Council is very positive.”
Gold futures for August delivery climbed 0.9 percent to settle at $1,391.80 an ounce at 1:48 p.m. on the Comex in New York. Yesterday, prices slipped 0.6 percent after topping $1,400.
“Gold is surging toward $1,400 again, as the World Gold Council opined today about record demand from Asia offsetting ETF liquidations,” Dave Lutz, the head of exchange-traded fund trading and strategy at Stifel Nicolaus & Co. in Baltimore, said in an e-mailed note today.
Trading was 55 percent higher than the average for the past 100 days for this time of day, according to data compiled by Bloomberg. Assets in exchange-traded products backed by the metal have shrunk 18 percent this year.
Silver futures for July delivery rose 1.2 percent to $22.453 an ounce in New York.
On the New York Mercantile Exchange, palladium futures for June delivery retreated 1.2 percent to $750.10 an ounce. Trading was more than double the average in the past 100 days for this time, according to Bloomberg data.
Platinum futures for July delivery slid 0.6 percent to $1,453 an ounce.
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