Gold Gains in London to Narrow Biggest Monthly Drop Since June
London (Nov 29) Gold gained for a second day, trimming the biggest monthly drop since June, as signs of physical purchases countered speculation for less U.S. stimulus. Silver narrowed the biggest monthly drop since June.
Gold approached a 34-month low of $1,180.50 an ounce set in June after Federal Reserve minutes released on Nov. 20 signaled policy makers expected an improving economy to warrant trimming debt purchases in coming months. U.S. data this week showed jobless claims unexpectedly fell and leading economic indicators rose for a fourth month.
Bullion is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value. Data showed this week China’s net gold imports from Hong Kong climbed to the second-highest level on record in October, while volumes for the nation’s benchmark spot contract rose to a seven-week high yesterday.
“Physical demand is solid, but not bullish enough to spark significant short-covering,” Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd. in Singapore, wrote today in a report, referring to closing bets on bearish wagers. “Market sentiment remains less than encouraging.”
Gold for immediate delivery rose 0.2 percent to $1,246.40 by 9:50 a.m. in London. Prices slid 5.8 percent this month, the most since June, and reached $1,225.55 an ounce on Nov. 25, the lowest since July 8. Bullion for February delivery gained 0.6 percent to $1,245 on the Comex in New York.
U.S. Holiday
U.S. markets were closed for Thanksgiving and yesterday’s electronic transactions will be booked today. Futures trading volume was 79 percent higher the average for the past 100 days for this time of day, data compiled by Bloomberg showed.
China’s net gold imports from Hong Kong were 129.9 metric tons last month, government data showed. Imports were a record 130 tons in March. Volumes for bullion of 99.99 percent purity traded on the Shanghai Gold Exchange climbed to the most since Oct. 8 yesterday.
Silver for immediate delivery gained 0.8 percent to $19.893 an ounce in London. The metal is set for a first weekly gain in five, cutting its monthly decline to 9.2 percent, still the largest since June.
Palladium was little changed at $721.58 an ounce, and heading for the first monthly decline in three. Platinum increased 0.3 percent to $1,366.80 an ounce. It’s set for a monthly loss and fell to $1,351.70 yesterday, the lowest since July 8.
