By Phoebe Sedgman - Aug 12, 2013 10:20 AM GMT+0400
Gold climbed to the highest level this month after holdings in the biggest bullion-backed exchange-traded product expanded for the first time since June. Platinum advanced for a fourth day to a two-month high.
Bullion for immediate delivery rallied as much as 1.5 percent to $1,333.94 an ounce, the highest price since July 31, and traded at $1,331.69 at 2:05 p.m. in Singapore. Gold for December delivery climbed as much as 1.6 percent to $1,333 an ounce on the Comex in New York and was at $1,330.40.
Aug. 12 (Bloomberg) -- Dominic Schnider, head of commodities research at UBS AG’s wealth-management unit in Singapore, talks about the outlook for precious metals and crude oil. Schnider also discusses aluminum prices. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move." (Source: Bloomberg)
The precious metal tumbled 21 percent this year as speculation that the U.S. Federal Reserve may taper its stimulus program helped to spur record outflows from ETPs. Assets in the SPDR Gold Trust increased 1.8 metric tons to 911.13 tons on Aug. 9, the first gain since June 10, according to data compiled by Bloomberg. Holdings are still down 439.69 tons this year after contracting every month from January, the data show.
“What we need to maintain the current gold price level is actually inflows,” Dominic Schnider, head of commodities research at UBS AG’s wealth-management unit in Singapore, said on Bloomberg Television today, predicting lower prices in the next three to six months. “What’s really saved us so far on the consumer side in emerging markets has been China.”
Nationwide gold consumption rose 54 percent to 706.36 tons in the first six months from a year earlier, the China Gold Association said today. China’s jewelry sales climbed 42 percent in July from a year earlier, according to the National Bureau of Statistics. The country is the world’s largest gold producer.
Bullish Outlook
Demand for physical gold is robust, irrespective of prices, Eddie Listorti, co-head of fixed income, currencies and commodities at Australia & New Zealand Banking Group Ltd., said in an interview last month. The bank has forecast gold at $1,400 an ounce in 2014 and $1,500 in 2015.
Silver for immediate delivery jumped as much as 3.5 percent to $21.285 an ounce, the highest price since June 20, before trading at $21.1475. The metal advanced 3.3 percent last week, the biggest gain since the period to July 12.
Platinum climbed as much as 0.8 percent to $1,509.70 an ounce, the highest price since June 11, and was at $1,507.55. The gain extended last week’s 3.6 percent advance, the fifth straight weekly increase that’s the best run since February 2012.
Palladium increased as much as 0.6 percent to $746.40 an ounce, the highest level since July 29, and was at $746.25.
To contact the reporter on this story: Phoebe Sedgman in Melbourne atpsedgman2@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
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