Gold rises on central banks' purchases
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Gold rises on central banks' purchases
SINGAPORE: Gold rose, extending gains after the best week in a month, as
buying by central banks and signs of increased physical demand
countered continued outflows in investor holdings.
Spot gold
gained as much as 0.4 percent to $1,392.02 an ounce before trading at
$1,391.67 by 10:43 a.m. in Singapore. Prices advanced 2 percent last
week, the best showing since the five days to April 26, on speculation
the U.S. Federal Reserve will maintain asset purchases and as China
manufacturing slowed.
Markets in the U.S. and U.K. are closed today.
Russia
and Kazakhstan expanded gold reserves for the seventh straight month in
April, when prices tumbled into a bear market, International Monetary
Fund data show. The volume for the Shanghai Gold Exchange's benchmark
jumped to a three-week high on May 24, while assets in gold-backed
exchange-traded products dropped for a 15th week last week.
"We
expect the trend of central bank buying to continue, especially in the
emerging economies," said Alexandra Knight, an economist at National
Australia Bank Ltd. in Melbourne.
"While expectations are for lower prices at the end of the year, physical demand, especially in Asia, has been very supportive."
Bullion
for August delivery gained 0.2 percent to $1,390.60 an ounce on the
Comex in New York. Money managers cut their net- long position by 9
percent to 35,686 futures and options in the week to May 21, the lowest
since July 2007, U.S. Commodity Futures Trading Commission data show.
Cash
silver climbed 0.8 percent to $22.58 an ounce, platinum rose 0.2
percent to $1,454.50 an ounce, and palladium gained 0.6 percent to
$731.50 an ounce. -- BLOOMBERG
buying by central banks and signs of increased physical demand
countered continued outflows in investor holdings.
Spot gold
gained as much as 0.4 percent to $1,392.02 an ounce before trading at
$1,391.67 by 10:43 a.m. in Singapore. Prices advanced 2 percent last
week, the best showing since the five days to April 26, on speculation
the U.S. Federal Reserve will maintain asset purchases and as China
manufacturing slowed.
Markets in the U.S. and U.K. are closed today.
Russia
and Kazakhstan expanded gold reserves for the seventh straight month in
April, when prices tumbled into a bear market, International Monetary
Fund data show. The volume for the Shanghai Gold Exchange's benchmark
jumped to a three-week high on May 24, while assets in gold-backed
exchange-traded products dropped for a 15th week last week.
"We
expect the trend of central bank buying to continue, especially in the
emerging economies," said Alexandra Knight, an economist at National
Australia Bank Ltd. in Melbourne.
"While expectations are for lower prices at the end of the year, physical demand, especially in Asia, has been very supportive."
Bullion
for August delivery gained 0.2 percent to $1,390.60 an ounce on the
Comex in New York. Money managers cut their net- long position by 9
percent to 35,686 futures and options in the week to May 21, the lowest
since July 2007, U.S. Commodity Futures Trading Commission data show.
Cash
silver climbed 0.8 percent to $22.58 an ounce, platinum rose 0.2
percent to $1,454.50 an ounce, and palladium gained 0.6 percent to
$731.50 an ounce. -- BLOOMBERG
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