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Gold Rises Boosted by Holiday Demand from China

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.

via Bloomberg [1]

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.

Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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