Gold traded near a five-week high in London as investors weighed signs of increasing physical demand against the outlook for less U.S. stimulus. Platinum rose to the highest since November on prospects for strikes in South Africa.
Bullion posted a fourth weekly gain on Jan. 17 in the longest rally since September 2012, on signs of increased demand in China and as holdings in gold-backed funds rose the most in more than a year on Jan. 17. The U.S. Mint sold 83,500 ounces of American Eagle gold coins so far in January, heading for the biggest monthly total since April, data from the mint show.
Federal Reserve policy makers said on Dec. 18 they would cut monthly bond purchases to $75 billion from $85 billion, with the pace of further reductions dependent on the performance of the economy. Policy makers next meet Jan. 28-29. The Bloomberg Dollar Spot Index, a measure against 10 major currencies, traded below a four-month high set Jan. 17.
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.