Gold rises on investment demand
Sunday, 30 August 2009
LONDON, Aug. 29 (Bloomberg): Gold futures rose to a three-week high on signs of increasing investor demand. Silver had the biggest gain in almost four months.
Gold assets in exchange-traded funds monitored by UBS AG are "98 per cent of the all-time highs," the bank said today in a report. Holdings in ETF Securities Ltd.'s exchange-traded commodities rose to a record yesterday.
"Our coin and investment-bar sales in Europe this week for the first time in several months were reasonable, or even quite good," said John Reade, the head of metals strategy at UBS AG in London.
Gold futures for December delivery rose $11.50, or 1.2 per cent, to $958.80 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $964.60, the highest level for a most-active contract since Aug. 7.
The metal rose 0.4 per cent this week and has gained 8.4 this year.
Yesterday, gold assets in ETF Securities's funds climbed to almost 8 million ounces from 7.96 million ounces.
"The flows have been going into the European-listed gold" products at ETF Securities, said Nicholas Brooks, head of the company's research in London. Soaring US and U.K. budget deficits may have helped to trigger the demand, he said.
Gold for immediate delivery rose $7.35, or 0.8 per cent, to $955.50 an ounce at 3:10 p.m. New York time.
Gold assets in exchange-traded funds monitored by UBS AG are "98 per cent of the all-time highs," the bank said today in a report. Holdings in ETF Securities Ltd.'s exchange-traded commodities rose to a record yesterday.
"Our coin and investment-bar sales in Europe this week for the first time in several months were reasonable, or even quite good," said John Reade, the head of metals strategy at UBS AG in London.
Gold futures for December delivery rose $11.50, or 1.2 per cent, to $958.80 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $964.60, the highest level for a most-active contract since Aug. 7.
The metal rose 0.4 per cent this week and has gained 8.4 this year.
Yesterday, gold assets in ETF Securities's funds climbed to almost 8 million ounces from 7.96 million ounces.
"The flows have been going into the European-listed gold" products at ETF Securities, said Nicholas Brooks, head of the company's research in London. Soaring US and U.K. budget deficits may have helped to trigger the demand, he said.
Gold for immediate delivery rose $7.35, or 0.8 per cent, to $955.50 an ounce at 3:10 p.m. New York time.