Bloomberg
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Gold Reaches Three-Month High as Buyers Flock Back to Top ETF

“The momentum is behind gold at the moment.”

By Eddie van der Walt

(Bloomberg) --Gold reached a three-month high as investors purchased metal through the biggest exchange-traded fund for a fifth day, the longest buying spree since June.

Holdings in the SPDR Gold Shares ETF rose 1 metric ton to 827 tons as of Tuesday, the highest since Dec. 20, data on Bloomberg show. Assets have rebounded from a 10-month low set in late January, helping gold prices extend their first annual gain since 2012.

Bullion jumped 5.5 percent last month as a weaker dollar and investor concerns over Donald Trump’s U.S. presidency combined with seasonal buying before the Lunar New Year. Gold’s rally this week took it above its 100-day moving average, a sign to some traders and analysts who study chart patterns that prices may rise further.

“The momentum is behind gold at the moment,” Bernard Sin, head of precious metals trading at refiner MKS (Switzerland) SA, said by phone from Geneva. “The trend from a technical perspective is healthy and there is a lot of demand globally.”

Bullion for immediate delivery added 0.3 percent at $1,237.49 an ounce by 11:38 a.m. in London, according to Bloomberg generic pricing. The metal has gained in seven of the past nine days.

In other precious metals:

  • Spot silver added 0.3 percent to $17.7645 an ounce.
  • Platinum rose 1 percent to $1,015.40 an ounce.
  • Palladium was up 1 percent at $771.19 an ounce.

To contact the reporter on this story: Eddie van der Walt in London at [email protected] To contact the editors responsible for this story: Lynn Thomasson at [email protected] Nicholas Larkin, Jesse Riseborough

 

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