Gold rose from the lowest price this year as the U.S. dollar weakened and investors anticipated the return of buyers in China, the top consumer, from a week-long national holiday. Platinum slid to the lowest since 2009.
The Bloomberg Dollar Spot Index fell 0.3 percent, retreating from the four-year high it reached Oct. 3 when U.S. payrolls beat forecasts, stoking expectations the Federal Reserve will increase interest rates. China, which overtook India in 2013 to be the world’s largest consumer of gold, ends a week-long national holiday Oct. 8.
“Although downward pressure has continued this week, especially with key physical markets in Asia still out on holidays, follow-through selling has been relatively limited,” UBS AG analysts Edel Tully and Joni Teves said in a report today. “The critical technical support around $1,180 has held so far and prices appear to be finding some stability not too far south of the $1,200 psychological level.”
Bullion for immediate delivery gained 0.2 percent to $1,193.80 an ounce by 11 a.m. in London, according to Bloomberg generic pricing. The metal fell as much as 0.7 percent earlier today to $1,183.24 an ounce, the lowest since Dec. 31. Futures for December delivery rose 0.1 percent to $1,194 on the Comex in New York.
Futures trading volume was 17 percent above the average for the past 100 days for this time of day, according to data compiled by Bloomberg.
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