Gold Price Up on Rise in ETF Holdings
SAN FRANCISCO (Aug 12) Gold price climbed for a fourth straight day today helped by a rise in holdings in the world's biggest gold exchange-traded fund (ETF) and soft US data. Bullion’s appeal as safe haven has suffered this year from recovering US economy and ETFs outflows, which have resulted in about 20 percent decline in the precious metal’s price.
In other precious metals, silver performed strongly, having advanced more than three percent in the day so far. Palladium and platinum have also gained.
Base metals have all advanced today except for copper, which has suffered from stronger US dollar.
Gold and silver
Gold price has continued its rise on Monday boosted by weak US economic data and an increase in holdings in SPDR Gold Trust which grew 0.2 percent to 911.13 tonnes on Friday - the first increase since June 10.
"The inflows into SPDR is good news," said a trader in Hong Kong as quoted by Bloomberg. "The fund tends to have an impact on prices because of its size. But I don't think (inflows) will persist as fundamentals for gold are still negative."
Gold price has been some 1.3 percent up at around $1,330 an ounce for most of the day before rallying above the $1,340 mark in mid-afternoon European trading. The metal was found at 1,339.61 as of 14:50 BST.
According to Reuters technical analyst Wang Tao, gold might rise towards $1,356.
Silver price has also seen strong gains today, rising to $21.23 an ounce as of 14:47 BST from a close at $20.53 on Friday. Platinum price was up 0.13 percent at 1,504.00 an ounce by 14:55 BST, while palladium price was at $743.40, a 0.19 percent increase.
