Gold Set for Best January Showing Since 2008 as Demand Surges
By Glenys Sim - Jan. 31 (Bloomberg)Gold headed for the best January performance since 2008 on increased physical and investment demand as a weaker dollar boosted the metal’s appeal. Silver was poised for the best monthly start to a year since 1983.
By Glenys Sim - 31 Jan. 2012 (Bloomberg) Spot gold gained 0.3 percent to $1,735.63 at 1:39 p.m. in Singapore after touching a seven-week high of $1,740.02 on Jan. 27. It’s climbed 11 percent this month, the best advance since August. Silver rose 0.4 percent to $33.64 an ounce, 21 percent higher this month. “Both physical and investment demand have been robust so far this year as gold is still seen as a good safety net for diversifying portfolios, said Wang Xiaoli, chief investment strategist at Citic Futures Co., who was rated fifth in a Futures Daily and Securities Times poll of China gold analysts.
Gold holdings in exchange-traded products climbed 0.6 percent this month, rebounding from December’s 1.3 percent decline, which was the largest outflow since January 2011. They were at 2,371.248 metric tons yesterday, within 1 percent of a Dec. 13 record, according to data tracked by Bloomberg.
Mainland China’s gold imports from Hong Kong surged to a record in November as consumers bought the metal before the Lunar New Year this month. The nation, also the world’s largest producer, overtook India in the third quarter as the biggest gold-jewelry market, according to the World Gold Council.
Gold for April delivery rose 0.2 percent to $1,738.40 an ounce on the Comex in New York, 11 percent higher this month. June-delivery gold on the Shanghai Futures Exchange gained as much as 0.7 percent to 355.53 yuan a gram ($1,751.03 an ounce) the highest level since Dec. 8.
Weaker Dollar
The dollar slid 1.6 percent in January versus a six- currency basket even as European policy makers sought to overcome the region’s debt crisis. The Federal Reserve pledged on Jan. 25 to keep interest rates low for at least three years.
“The dollar will continue to present itself as a barrier to higher gold prices, as it is rising on both Europe’s debt- crisis concerns as well as an improvement in the U.S. economy, said Wang.
Platinum for immediate delivery rose as much as 0.7 percent to $1,624.75 an ounce, the highest price since Nov. 17. It was last at $1,620.25, 16 percent higher this month and set the best advance since February 2008. Spot palladium gained as much as 0.5 percent to $692 an ounce, before trading at $690.50, up 5.4 percent this month.
