Gold futures rose as buyers returned after a one-week holiday in China, the largest consumer of the metal. Platinum also advanced.
Bullion slumped 1.9 percent last week, erasing gains for the year as signs the U.S. economy is improving added to the case for policy makers to raise interest rates. China was on holiday since Oct. 1 through yesterday.
“Consumers who are faced with a local gold price which is 13 percent below the peak this year may be finding value here,” Edel Tully, an analyst at UBS AG in London, said in an e-mailed report today. “Physical demand is returning.”
Gold for December delivery advanced 0.4 percent to $1,217.20 an ounce by 7:49 a.m. on Comex in New York, rising for a third day in the longest streak since Aug. 14. Bullion for immediate delivery gained 0.7 percent to $1,217.39 an ounce.
The Federal Open Market Committee will release minutes from its Sept. 16-17 meeting at 2 p.m. Washington time. Investors have been concerned the central bank may raise interest rates sooner than anticipated as the U.S. economy improves. The anticipation of tighter U.S. monetary policy caused gold prices to sink 28 percent last year.
Platinum futures for January delivery rose 1.1 percent in New York to $1,275.20 an ounce. Palladium futures for delivery in December advanced 1.3 percent to $797 an ounce. Silver climbed 0.8 percent to $17.375 an ounce.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.