Tags: gold | futures | India | China

Gold Futures Advance Most in 2 Weeks on India, China Demand

Wednesday, 08 May 2013 05:17 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Gold futures posted the biggest gain in almost two weeks on Wednesday, as demand for bars and jewelry increased in India and China, the world's largest consumers of the metal.

Imports by China from Hong Kong more than doubled to an all-time high in March, Hong Kong government data showed Tuesday. India’s purchases are set to top 100 metric tons in May for the second straight month, according to MMTC-PAMP India Pvt., a bullion refiner. Last month, gold had the biggest two-day drop in 33 years, slumping into a bear market. The metal has climbed 12 percent from a 26-month low on April 16.

"The jump in prices was mainly on reports of strong physical buying from India and China," Michael Smith, the president of T&K Futures & Options Inc. in Port St. Lucie, Florida, said in a telephone interview. "Imports by China in April may have been even higher than in March."

Gold futures for June delivery advanced 1.7 percent to settle at $1,473.70 an ounce at 1:46 p.m. on the Comex in New York, the biggest gain for a most-active contract since April 25. On April 16, the price touched $1,321.50, the lowest since Jan. 28, 2011.

Buyers in mainland China purchased 223,519 kilograms (223.52 tons) of gold in March, including scrap, compared with 97,106 kilograms in February, Hong Kong government data showed. Separate figures Tuesday showed China’s gold usage rose 26 percent in the first quarter as prices fell.

SPDR Fund

Tuesday, holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, declined 0.4 percent to 1,057.79 tons, the lowest since March 2009, according to data compiled by Bloomberg.

Gold has dropped 12 percent this year as equities rallied and some investors lost faith in the metal as a store of value. Tuesday, the Standard & Poor's 500 Index closed at a record for the fourth straight session, while the Dow Jones Industrial Average settled above 15,000 for the first time.

"We strongly believe that gold prices will fall under heavy pressure again on a further liquidation of gold-investment demand," Georgette Boele, a commodities strategist at ABN Amro Group NV, said in a report.

Silver futures for July delivery rose 0.5 percent to $23.927 an ounce on the Comex. The price has dropped 21 percent this year.

On the New York Mercantile Exchange, platinum futures for July delivery gained 1.6 percent to $1,504.90 an ounce.

Palladium futures for June delivery rose 2.6 percent to $698.25 an ounce, the biggest jump since March 20.

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved