... and gold takes advantage
london — Gold prices hit a twoweek high on Tuesday as the dollar fell on fading prospects of an imminent increase to US interest rates and expectations of stronger demand from the physical market.
Spot gold was up 0.2 per cent at $1,2361 an ounce by 0913GMT, having touched $1,238.76, its highest since July 3.
US gold futures rose 0.3 per cent to $1,236.80.
“We see gold averaging around $1,300 over the third quarter,” said ING commodities strategist Warren Patterson. “Indian imports
We see gold averaging around $1,300 over the third quarter Warren Patterson, Commodities strategist at ING
are rising after the very poor year last year. We expect that trend to continue even with the tax changes.”
Data from consultancy GFMS shows India’s gold imports climbed to an estimated 75 tonnes in June from 22.7 tonnes a year ago. For the first half of the year imports rose to 514 tonnes, up 161 per cent from a year earlier. GFMS analysts said the jump was spurred by Indian consumers buying ahead of July’s increase in the goods and services tax on gold to three pe rcent from 1.2 per cent.
However, investors are still retreating from physical gold. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, slipped to 827.07 tonnes on Monday, down from 828.84 tonnes on Friday.
Elsewhere, silver gained 0.4 per cent to $16.13 an ounce after touching a two-week high at $16.23. Platinum slid 0.2 per cent to $920.24 while palladium ceded 0.4 per cent $862.00. —