Gold rises on physical buying, outlook cautious



REUTERS

Published — Thursday 25 April 2013

Last update 25 April 2013 2:26 am

| نسخة PDF Print News | A A

NEW YORK: Gold prices rose along with crude oil, with physical buyers scooping up the precious metal after a sell-off sent bullion to a two-year low.
US durable goods data posted the biggest drop in seven months.
Some investors viewed the data as a sign the Federal Reserve would maintain its monetary stimulus at its policy meeting next week, boosting gold’s inflation-hedge appeal.
Brent crude oil jumped 1.4 percent and copper also surged. The higher industrial commodities prices lifted gold, but traders said signs of a continued US economic recovery will put a lid on gold’s gains.
“If recent numbers are any indication, the US economy is not terrible. The Fed watchers will likely begin to talk about a later time for a tapering of the stimulus. This will in turn boost the equities markets and leave gold flat,” said Carlos Santalla at commodities broker Marex Spectron.
Bullish remarks on gold by billionaire investor John Paulson also supported prices. Paulson told investors he is staying the course on gold even though there may be more short-term volatility in the price of the metal.
Spot gold rose 1 percent to $ 1,425.79 an ounce by 1900 GMT.
Gold has risen in six of the last seven sessions, after the metal sank a combined $ 225 on April 12 and 15 in a sell-off that surprised gold bulls.
US gold futures for June delivery settled up $ 14.90 at $ 1,423.70 an ounce.
Trading volume has slowed after surging to a record high last week. Turnover was around half of its 30-day average, preliminary Reuters data showed.
Investor confidence in gold is still reeling. Outflows from exchange-traded funds showed no signs of abating, in contrast to soaring demand for coins and bars which are favored by smaller retail investors as a store of value.
The Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.68 percent to 1,097.19 tons on Tuesday from 1,104.71 tons on Monday, the lowest level since October 2009.
Premiums for gold bars soared to multi-year highs in Asia after a spate of physical buying ran down supplies, with dealers in top consumer India expecting a surge in imports this month.
US physical gold demand also soared. The US Mint said it has suspended sales of its one-tenth ounce American Eagle gold bullion coins as surging demand after bullion’s plunge to two-year lows depleted the government’s inventory.
Among other precious metals, silver rose 0.9 percent to $ 23.11 an ounce.
A pick-up in manufacturing activity and an improving global economy should help silver’s fabrication demand recover this year, precious metals research firm Thomson Reuters GFMS said in a report.
In platinum group metals, platinum gained 0.9 percent to $ 1,426 an ounce, while palladium fell 1 percent to $664.97 an ounce.

What's happening around Saudi Arabia

Arab News Editor in Chief Mohammed Fahad Al-Harthi hosted a banquet for editors in chief of local print and online publications, Shoura Council members, representative of the Ministry of Culture and Information, prominent writers and columnists in Je...
JEDDAH: Health workers from Riyadh’s National Guard hospital would not be allowed to perform Haj this year, or work at the holy sites, the Ministry of Health has announced.Hail Al-Abdali, head of the ministry’s infection control unit, was reportedly...
RIYADH: Construction on the multibillion-riyal Riyadh Metro is well under way with several giant drilling machines working overtime to ensure that underground tunnels for the project are completed on schedule.The Arriyadh Development Authority (ADA)...
JEDDAH: Officials from the Saudi Ministry of Haj have been holding meetings with their counterparts from Arab and South Asian nations in preparation for this year’s pilgrimage.Abdulrahman bin Ali Al-Nafei, assistant deputy minister of Haj and in char...
RIYADH: Four polling stations in Tabuk have stopped registering voters for the Dec. 12 municipal elections in the region.Ibrahim bin Ahmed Al-Ghabban, undersecretary at the Tabuk municipality and member of the local committee for the election of a mu...
JEDDAH: Many prospective candidates running for seats on the country’s municipal councils have been using Twitter to boost their election campaigns.Many have been using religious expressions in their messages, such as “In the name of God,” and “If He...
DAMMAM: There has been a flurry of activity on the Kingdom’s highways as service companies race to meet the Jan. 19 deadline for the revamp of dilapidated gas stations.The Ministry of Municipal and Rural Affairs has previously handed out rehabilitati...
RIYADH: Saudi Arabia and Germany have signed an agreement on mutual protection of classified information to provide a legal framework for enhanced cooperation in the defense sector. The pact was signed by Mohammed bin Abdullah Al-Aish, assistant mini...
JEDDAH: While Saudi Arabia has now arrested the main suspect in the 1996 bombing of the Alkhobar Towers residence at an American military base in the country, the hunt continues for three others, according to reports in the local media on Thursday.Ah...
AL-AHSA: Located in the western part of Al-Qara Mountain is a workshop for the pottery industry, molding clay in plastic forms that are given permanency by the use of intense heat. This art form became one of the major attractions in Al-Ahsa Archaeol...
RIYADH: A newborn baby boy, who appeared to be just hours old, was found lying in the grass, covered with a blanket, in an abandoned field in Jazan on Tuesday morning.According to local residents, a family passing by heard the baby crying and rushed...
TAIF: Several schools in Taif have recorded a lack of schoolbooks for primary and intermediate classes for the first time in 15 years, a local publication reported.This has resulted in many boys and girls not turning up for classes. A source said tha...
RIYADH: Justice Minister Walid Al-Samaani said that directives from Custodian of the Two Holy Mosques King Salman to protect the rights of citizens and public properties are being strictly implemented.“All legal measures are being taken to hold accou...
RIYADH: Najran region has retained its veritable unique cultural heritage and attractions, which include old mud buildings constructed some 300 years ago.While the laid-back ambience in many areas is gone due to modern life brought about by contempor...
RIYADH: Saudi Arabia, under Custodian of the Two Holy Mosques King Salman’s wise leadership, has witnessed an accelerated pace of economic growth with improved living standard of its people, says Uzbekistan Ambassador to Saudi Arabia Alisher Kadirov....

Stay Connected

Facebook