Gold advances to four-week high in London
Wednesday, 16 February 2011
LONDON, Feb 15 (Bloomberg): Gold gained to the highest level in almost four weeks in London on speculation rising inflation will spur demand for the metal as an alternative asset.
China's consumer prices rose 4.9 per cent in January from a year earlier, the nation's statistics bureau said, exceeding the government's 2011 target for four months. Investor George Soros increased his SPDR Gold Trust exchange-traded product holdings by 0.5 per cent in the fourth quarter and John Paulson kept his investment unchanged, filings showed.
"With inflation concerns heating up and the metals underpinned by a mix of physical and investment demand it looks as if further gains are in the pipeline," James Moore, an analyst at TheBullionDesk.com in London, said in a report.
Immediate-delivery bullion added as much as $11.13, or 0.8 per cent, to $1,372.98 an ounce, the highest price since Jan. 19, and traded at $1,372.28 at 9:53 a.m. in London. The metal for April delivery was 0.5 per cent higher at $1,372.50 on the Comex in New York.
China's inflation was less than the median forecast of 5.4 per cent in a Bloomberg News survey of economists.
Concern about rising inflation and currency debasement drove prices up 30 per cent last year, setting a record $1,431.25 in December. China last week joined India, Indonesia, Thailand and South Korea in boosting interest rates as policy makers sought to cool the economies leading a global rebound. Bullion declined 3.5 per cent this year as signs the economic recovery is strengthening curbed demand for a protection of wealth.
Soros Fund Management LLC held 4,721,808 SPDR Gold Trust shares as of Dec. 31, compared with 4,697,008 shares at the end of the third quarter, a filing with the U.S. Securities and Exchange Commission showed. The New York-based firm's holdings in the iShares Gold Trust of 5 million shares remained unchanged. Paulson & Co.'s holding, the largest in the SPDR fund, was 31.5 million shares, a separate filing showed.
Gold held in ETPs added 0.79 metric ton to 2,020.19 tons yesterday, after falling the previous six sessions, data compiled by Bloomberg from 10 providers show. Holdings slipped to the lowest level since June on Feb. 11 and reached a record 2,114.6 tons in December.
Silver for immediate delivery in London increased 0.3 per cent to $30.7138 an ounce. Palladium was 0.3 per cent at $837 an ounce. Platinum was 0.6 per cent higher at $1,840.80 an ounce.
China's consumer prices rose 4.9 per cent in January from a year earlier, the nation's statistics bureau said, exceeding the government's 2011 target for four months. Investor George Soros increased his SPDR Gold Trust exchange-traded product holdings by 0.5 per cent in the fourth quarter and John Paulson kept his investment unchanged, filings showed.
"With inflation concerns heating up and the metals underpinned by a mix of physical and investment demand it looks as if further gains are in the pipeline," James Moore, an analyst at TheBullionDesk.com in London, said in a report.
Immediate-delivery bullion added as much as $11.13, or 0.8 per cent, to $1,372.98 an ounce, the highest price since Jan. 19, and traded at $1,372.28 at 9:53 a.m. in London. The metal for April delivery was 0.5 per cent higher at $1,372.50 on the Comex in New York.
China's inflation was less than the median forecast of 5.4 per cent in a Bloomberg News survey of economists.
Concern about rising inflation and currency debasement drove prices up 30 per cent last year, setting a record $1,431.25 in December. China last week joined India, Indonesia, Thailand and South Korea in boosting interest rates as policy makers sought to cool the economies leading a global rebound. Bullion declined 3.5 per cent this year as signs the economic recovery is strengthening curbed demand for a protection of wealth.
Soros Fund Management LLC held 4,721,808 SPDR Gold Trust shares as of Dec. 31, compared with 4,697,008 shares at the end of the third quarter, a filing with the U.S. Securities and Exchange Commission showed. The New York-based firm's holdings in the iShares Gold Trust of 5 million shares remained unchanged. Paulson & Co.'s holding, the largest in the SPDR fund, was 31.5 million shares, a separate filing showed.
Gold held in ETPs added 0.79 metric ton to 2,020.19 tons yesterday, after falling the previous six sessions, data compiled by Bloomberg from 10 providers show. Holdings slipped to the lowest level since June on Feb. 11 and reached a record 2,114.6 tons in December.
Silver for immediate delivery in London increased 0.3 per cent to $30.7138 an ounce. Palladium was 0.3 per cent at $837 an ounce. Platinum was 0.6 per cent higher at $1,840.80 an ounce.