Gold advances as recovery signs fuel demand, platinum jumps
Tuesday, 6 April 2010
LONDON, April 5 (Bloomberg): Gold gained as signs that the global economic recovery is strengthening buoyed demand for commodities and stocks. Platinum jumped to the highest since August 2008.
Gold for immediate delivery rose 0.5 per cent to $1,125.80 an ounce at 5:52 p.m. in Singapore. Futures for June delivery in New York were little changed at $1,126.70 an ounce.
"Speculative buying is continuing on bets that the economic recovery is gathering pace," said Paul Yamamura, Tokyo-based precious metals trader with Sumitomo Corp. "The market is bullish at the moment."
US service industries probably expanded in March at the fastest pace since 2007, economists said, before the release of a report today. Manufacturing in China grew for a 13th month and US factories expanded the most since July 2004, reports showed last week. Business sentiment in Japan rose to the highest since 2008, while factories in Britain and the euro region stepped up production.
Thirteen of 23 traders, investors and analysts surveyed by Bloomberg, or 57 per cent, said bullion would rise this week. Five forecast lower prices and five were neutral.
Platinum for immediate delivery jumped as much as 1.6 per cent to $1,688.75 an ounce, the highest since Aug. 1, 2008. Its ratio to gold is at the highest level since Lehman Brothers Holdings Inc. filed for bankruptcy in September 2008.
An ounce of platinum bought 1.4925 ounces of gold today. The ratio averaged 1.3 last year and soared to 2.4 in May 2008, the highest level since 2001, according to Bloomberg data.
The metal, used in mainly in catalytic converters, has climbed 15 per cent this year, outperforming gold's 2.6 per cent gain, as the start of exchange-traded platinum funds in the US in January boosted purchases.
Silver for immediate delivery increased 0.2 per cent to $17.95 an ounce, while palladium dropped 0.7 per cent to $491.50 an ounce.
Gold for immediate delivery rose 0.5 per cent to $1,125.80 an ounce at 5:52 p.m. in Singapore. Futures for June delivery in New York were little changed at $1,126.70 an ounce.
"Speculative buying is continuing on bets that the economic recovery is gathering pace," said Paul Yamamura, Tokyo-based precious metals trader with Sumitomo Corp. "The market is bullish at the moment."
US service industries probably expanded in March at the fastest pace since 2007, economists said, before the release of a report today. Manufacturing in China grew for a 13th month and US factories expanded the most since July 2004, reports showed last week. Business sentiment in Japan rose to the highest since 2008, while factories in Britain and the euro region stepped up production.
Thirteen of 23 traders, investors and analysts surveyed by Bloomberg, or 57 per cent, said bullion would rise this week. Five forecast lower prices and five were neutral.
Platinum for immediate delivery jumped as much as 1.6 per cent to $1,688.75 an ounce, the highest since Aug. 1, 2008. Its ratio to gold is at the highest level since Lehman Brothers Holdings Inc. filed for bankruptcy in September 2008.
An ounce of platinum bought 1.4925 ounces of gold today. The ratio averaged 1.3 last year and soared to 2.4 in May 2008, the highest level since 2001, according to Bloomberg data.
The metal, used in mainly in catalytic converters, has climbed 15 per cent this year, outperforming gold's 2.6 per cent gain, as the start of exchange-traded platinum funds in the US in January boosted purchases.
Silver for immediate delivery increased 0.2 per cent to $17.95 an ounce, while palladium dropped 0.7 per cent to $491.50 an ounce.