Monday, July 15, 2013

Gold gains for fifth time in six sessions in New York


Some weaker-than-expected U.S. retail sales figures provided the impetus for investors to continue buying gold on Monday, as the figures increased the speculation that the U.S. Federal Reserve will continue with stimulus measures to support economic growth.

Gold has now gained in five of the last six sessions.

The yellow metal climbed $5.90, or 0.5%, to settle at $1,283.50 an ounce on the Comex division of the New York Mercantile Exchange, following a gain of 5.4% last week, the most since October 2011

Gold in the spot market has edged slightly higher to US$1285 an ounce.

Also driving the gold price higher in recent days has been hedge-fund buying, as data from the U.S. Commodity Futures Trading Commission for July 9 showed that speculators increased their net-long positions over 4% to 35,691 futures and options.

Further support for bullion is the physical retail buying in China, which is understood to have rebounded in early July as gold prices fell.

As bullion fell to a 34-month low in June, buyers of the physical metal in bars, coins a jewellery jumped, and in another bullish signal the cost of borrowing gold pushed near a five-year high in London.

courtesy of proactiveinvestors.com.au

No comments:

Post a Comment